3 Loan Financing Moves to Make Right Now | From Experts at Summit Credit Union

This post is sponsored by our friends at Summit Credit Union. We have personally used and trust Summit Credit Union for banking and mortgage needs!

You’ve probably heard it by now – mortgage rates are at historic lows, and there’s never been a better time to refinance your loan and save money. Of course, it sounds like a no-brainer, but maybe you think the process will be more of a hassle than it’s worth. Think again! Whether you want to start a home renovation, pay down debt or just knock some time off your loan term, there’s a smart financing move you can make right now – and it’s not nearly as overwhelming as you might imagine.

Keep reading for a few ways you can lock in lower rates, save money and, most importantly, reach your personal and financial goals!

#1: Refinancing

With rates as low as they are right now, locking in a lower rate with a refinance can slash your monthly payment and cut months – or even years – off your loan term. You might’ve heard that refinancing will help make your monthly payments easier, but it still just feels like the process is too complex or too much of a bother to look into. But with Summit by your side, that’s not the case! Once you apply, a Summit Mortgage Loan Officer will contact you within one business day to get the ball rolling on your refi. And don’t worry about losing a great rate if they change before you close — you can choose to lock in your rate when you apply or up to a week before closing. You’ll sleep easier knowing you’re getting the best deal possible.

Even if you feel like your mortgage situation is too complicated or it wouldn’t be worth the hassle to start the process, the upsides of a refinance can completely transform your financial and mental outlook for years to come. Plus, not only could a refi help give you some breathing room in your monthly payments, think about everything you could do with the money you’re saving! A refi can unlock more possibilities for your money, whether it’s paying off more debt each month, stashing funds away for a beach vacation or finally starting that bathroom remodel you’ve been promising yourself for years.

#2: Cash-Out Refinances

Speaking of home renovations: If 2020 left you realizing the importance of having a place you can enjoy spending time in, you might be looking to upgrade your home this year. For projects that require a bit of extra cash on hand, a cash-out refinance may be a better option than the traditional refi route. With a cash-out refinance, you retool your mortgage AND put cash in your pocket by making your home equity work for you. A cash-out replaces your existing mortgage with one worth more than you currently owe. But in the process, you’ll get a lump sum of cash to help with whatever sits atop your to-do list – all while locking in a lower rate for the remainder of your mortgage!

Cash-outs aren’t just for home improvement projects, either. You can use your cash to get rid of lingering, high-interest debt or even just help make monthly payments that are taking a toll on your budget (and your stress levels). It takes almost no time at all to make a cash-out refinance happen, and the added flexibility can do wonders for your financial picture no matter whether you’re looking one, five or ten years down the road.

#3: Home Equity Lines of Credit (HELOC)

So, what if you want to take advantage of low rates – and your home equity – but you don’t need all that cash right now? A home equity line of credit (HELOC) is another way to lock in a low, fixed rate and give yourself a little more flexibility for whatever life throws your way. With a HELOC, you’ll have access to a line of credit against the equity in your home that you can use if and when you need it. With more flexible payment terms than a standard home equity loan and lower rates than most credit cards, HELOCs are a great option if you’re paying off debt, financing a home improvement project and more. They also give you access to funds in the event of an emergency. When unexpected expenses pop up, you’ll look back and be happy you gave yourself the safety net!

These money moves are simple but savvy, and they can make a huge impact on your financial outlook. The best part? You don’t have to do it alone! There’s nobody better to help you navigate the process than Summit, the No. 1 Mortgage Lender in Southern Wisconsin. Saving money means more freedom and more possibilities to start living the life you’ve imagined, so don’t let fear of the process hold you back! You can even see the potential savings for yourself by checking out loan refinancing calculator and HELOC payoff calculator.

So whether you’re considering a traditional refi, cash-out refi or HELOC – or if you don’t even know what might be the best choice for your present and future – Summit is here to help you navigate the road to owning your finances.

Contact Summit Credit Union’s Loan Department 

Visit their website
Call: 608-243-5000
Follow Summit on Facebook and Instagram!

Madison Moms Blog is written by and for moms who live in the Madison Area. We strive to connect local moms by sharing personal experiences, fun ideas and useful information as well as promoting local businesses. Our community begins online, but doesn't stop there! We offer Mom's Night Out events, play groups and other opportunities to connect offline, with and without kids.


Please enter your comment!
Please enter your name here