Looking for lower monthly payments? Wish your mortgage had a lower interest rate? Want to consolidate your debt? Want to pay off your loan faster?
If you answered “yes” to any of the above questions, then you may be ready to refinance your mortgage. Refinancing is just a fancy way to say that you’d like a new (and better) mortgage payment. It sounds simple, but there are many things to consider. Work with Greater Alliance Credit Union to make sure your refinanced mortgage meets the needs of your family and aligns with your overall financial goals.
Understand the advantage
If you purchased your current home with a high interest rate, and you have good credit history, refinancing your home to snag a lower rate could be for you. Advantages to refinancing include:
- Securing a lower interest rate.
- Locking in a lower monthly payment.
- Consolidating your debt.
- Paying off your loan faster.
- Locking in new loan terms.
- Eliminating private mortgage insurance.
Weigh the risk
Refinancing your home does come with risk. Not everyone looking to lower their interest payment will find success with refinancing. Discover some scenarios where you may want to avoid refinancing:
- If your breakeven point is too long.
- If the long-term savings aren’t significant.
- If you can’t afford the closing costs and are considering wrapping them into your monthly payment.
- If moving to an adjustable rate mortgage puts you at risk when your payment increases.
You will need to provide the following for a mortgage refinance:
- A copy of your deed
- Two years W-2 forms (for each borrower) or 2 years of tax returns
- One month of pay stubs (for each borrower)
- Payoff balance of your current mortgage
- Proof of assets
- Abstract of Title.
Don’t be an anonymous loan number. At Greater Alliance we work with you personally and want to know your story. Let us help you get into your new home.