Advantages of Mortgage Refinancing

A mortgage is often one of your largest monthly expenses, and while your home is valuable both as a residence and as an investment, you want to ensure that your mortgage is not a financial burden. Refinancing with a credit union is an option for refinancing instead of using a traditional bank and is an option that you should take into consideration. Before you refinance your home, you should consider the reasons you would want to and if it is the right move for you.

Should I Refinance My Mortgage?

Refinancing your home offers many advantages, and if any of these could help you better manage your finances, refinancing could be quite beneficial. Some of these advantages include.

• Lower Monthly Payments: One of the main reasons people refinance is to reduce their monthly mortgage payments. Mortgages can last for several decades, and life can change in that time frame, including increased monthly expenses or changes to your professional life. If you need more finical flexibility, refinancing can help.
• Reduced Interest Rates: When you sign a mortgage, the interest rates are set based on the current going rates. As loan rates can change greatly in response to the broader economy, it is very easy to end up with a higher interest rate than you’d get if you signed your mortgage today. Refinancing allows you to take advantage of better interest rates and save on your total out-of-pocket expenses.
• Cash Out Equity: When refinancing a mortgage, you can take cash out of your home's equity. This can be used for many needs, such as paying for your children’s education, home improvement, investing, or buying other property.
• A Faster Payment Term: Another advantage of refinancing is that you can renegotiate a shorter loan term. For example, you could have originally signed a 30-year term years ago but are now in a much stronger finical or professional situation. Adjusting your mortgage to a shorter term allows you to pay it off faster and at a better rate.

A mortgage is a long-term large contract; however, your home is often one of your most valuable assets. A mortgage that no longer matches your financial needs can cause undue financial stress. A refinanced mortgage can allow you to pay less or pay off your loan faster. No matter your mortgage needs, contact OUR Credit Union to find out how they can help.