When to Refinance Your Home
If you’ve been in your home for five or more years, you’ve probably got some equity. And if you’ve got a little equity, it might be a good time to refinance your mortgage. Here are a few other signs it’s time for a refi…
You can reduce your interest rate by 1% or more.
A 1% drop in your interest rate can save you thousands long-term. Consider this: A 15-year, $150,000 mortgage at 5 percent interest will accrue about $63,500 in interest over the life of the loan. Compare that to $49,700 in interest at 4 percent on the same home – that’s about $13,800 in savings.
You need that breathing room in your monthly budget.
Sending the kids to college? That kind of shift in spending can really affect your budget. Chances are that a refi will wind up lowering both your interest rate and your monthly mortgage payment. So, not only are you saving tons of money in the long run, you’re able to invest in your more immediate needs.
You can switch from an adjustable-rate mortgage to a fixed.
If the rate on your ARM is close to increasing, it’s a great time to lock in a fixed rate. Not only will you continue to save, but you’ll also be keeping your monthly payments predictable.
You can refi without closing costs.
Speaking of savings, how about adding a few thousand dollars to that list? When you refi without closing costs, that’s how much you can keep in your pocket. Between your application, credit report, flood determination, and appraisal fees, closing costs can really add up. Taking advantage of promotions like the No Closing Cost Mortgage from Visions can save upward of $3,370.
You’ll likely find the lowest rates and best advice at a local credit union like Visions, so stop in and talk to a representative to determine if it’s the best time for you to refi
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
All names on the deed must be on the application. You may start the application process online for all mortgage terms with the exception of the 30 year fixed.
To set up a mortgage appointment, and to apply in person, you may contact Visions mortgage department toll free at 800-242-2120 ex 10470.
Fees and closing costs will vary based on the value and location of the residence, and whether the property includes any gas leasing.
For general questions, and to get an estimate of the fees and closing costs, please contact our loan specialists at 800-242-2120 ex 10450. They're available Mon-Fri until 6pm and Sat from 8:30am-2pm.