This past year has been anything but typical. And right now interest rates are also anything but typical… while they are at near historic lows. It’s the perfect time to look at your current mortgage and to see if you could possibly lock in at a better (ie: lower) interest rate.
When it comes to mortgages and finances, it can be overwhelming and sometimes it’s hard to know where to start. For us, we started by calling Summit Credit Union – and within 24 hours we were connected with an expert. We were able to identify what the lowest current rate was that we qualified for based on our credit scores and current loan amount. And once we knew the interest rate, they gave us a rundown of what our new monthly payment would be, along with closing costs. We were given options of number of years for the loan (15, 20, 30 year) and were able to see what our rate and monthly payment would look like for each. Prior to this I didn’t realize that you can get an EVEN LOWER RATE when you do a shorter loan length!
It was a no-brainer and it made sense to lock in the rate and move forward. It all happened very quickly (which is what we had hoped for!).
The Benefits of Refinancing
Knock years off of your current loan: When my husband and I decided to refinance, we were able to take our 30 year mortgage down to a 15 year mortgage without increasing our monthly payment too drastically. Not only does this significantly take years off our loan; it saves a great deal of money (in interest) over the life of the loan. Each month the amount of money that is applied to our principal (ie: the amount of money we owe back) is greater than what it was when we were on a 30 year mortgage.
Lower your monthly payment: For some it makes sense to refinance simply so that you can reduce your monthly payment. You could save hundreds of dollars a month by taking advantage of a lower rate.
The entire process was smooth and we were able to lock in the new rate right away — you are able to lock in up to a week before closing. The Mortgage Loan Officer guided us the entire way and made sure that we had everything we needed. He spoke in a language that we easily understood and made it clear what we needed as far as paperwork and documents.
The closing costs and refinancing fees can be intimidating — but when we realized what the cost was versus the amount of money we were saving, it didn’t even come close. We were able to recoup the closing costs very quickly.
Contact Summit’s Mortgage Loan Department
Our home is likely the biggest investment that we will ever make. And with the mortgage rates as low as they are right now, it’s a great time to refinance your current loan. Eventually the rates are bound to go back up – so if this is something that you’ve been considering, (but haven’t known where to begin) – I encourage you to get ahold of someone at Summit Credit Union to at least explore your options. There is no cost to give them a call and to see what you qualify for and to see what would the most sense for you based on your financial situation. And whether you reduce the length of your loan or reduce the monthly payment, you will be saving A LOT of money!