You’ve carefully weighed the pros and cons and have decided that refinancing your mortgage is the way to go. You’ll save money in the short term and potentially in the long term, as well. However, you’re not sure where to start or how to refinance your mortgage.
If the property you’re looking to refinance is located in Pennsylvania, we have several home loan options to meet your needs.
Here’s what you need to know and do to get the refinancing ball rolling.
Should I Refinance My Mortgage?
You might be a good candidate to refinance your mortgage if:
- Current rates are lower than what you’re paying. Lowering your rate can have a significant impact on your monthly payment. Look at fixed- and adjustable-rate options to determine if you could be saving each month.
- You’re looking to shorten your term. Depending on how many years you have left on your current mortgage, refinancing can enable you to shorten the term, saving you in interest paid.
- You want to take cash out. You may be able to tap into your home’s equity when you refinance. You could use that cash to make home improvements or pay down debt.
- You’re looking to reduce your monthly payments. Extending your loan term could help reduce your monthly payments – helping you stay within your budget.
- You want to eliminate Private Mortgage Insurance (PMI). PMI allows borrowers who don’t have enough cash for a 20% down payment to purchase a home. However, once you’ve built up enough equity, you may be able to eliminate this extra insurance cost by refinancing.
Understand Your Refinance Options
When you refinance a mortgage, you might get a bit of a déjà vu feeling. That’s because refinancing is very similar to taking out a mortgage in the first place. Take a look at a few of the features you’ll need to choose between when refinancing your home loan and the different types of home loans available:
- Loan term. Just like with your first mortgage, you’ll need to pick the loan term that makes the most sense for you when you refinance. A longer term typically means lower monthly payments. A shorter term usually means less paid in interest over time.
- Fixed vs. adjustable rate. You don’t have much say over what your interest rate is, but you can choose between a fixed interest rate and an adjustable rate. With a fixed interest rate, the rate remains the same over the life of the loan. With an adjustable-rate mortgage, the interest rate is locked in for a period, but it can go up or down based on the market after that time.
- Amount of the home loan. You may refinance just to pay off your first mortgage with a loan with a better rate. In this case, the balance of your current mortgage is paid off with the new home loan, and you may have the option to roll the closing costs for your refinanced loan into the loan principal. In other cases, people use their refinanced loan to pay off their first mortgage and closing costs, as well as take out cash for another purpose.
What Are the Perks of Refinancing with PSECU?
If your property is in Pennsylvania and you’re ready to start the refinancing process, PSECU can help. We offer:
- A variety of mortgage refinance options for current homeowners and are happy to assist you in choosing the loan that’s best for you. Our experienced mortgage consultants will walk you through the process and explain your options.
- Competitive rates and flexible terms. We offer a range of fixed- and adjustable-rate options, as well as the variety of terms available, which means you’re likely to find a mortgage that fits your budget.
- Low origination fees and no appraisal fees. You can keep more money in your pocket with low, straightforward closing costs.
- No upfront fees. Fees are only charged when the loan closes.
Plus, when you refinance with us, you unlock all the benefits of a PSECU membership.
Ready to get started? Contact one of our experienced mortgage consultants today at 800.237.7328 ext. 3878.