Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Find Your Local Branch
Back
Scroll to top

Refinance Your Mortgage with These 5 Tips

Homebuying 3 min read

Ready to talk to an expert?

Find A Location Get In Touch

Over time, the mortgage market fluctuates and creates new opportunities for homeowners to revise the terms of their mortgage. This is known as refinancing. When refinanced, a mortgage can include lower interest rates, home equity credit, and a restructured loan duration.

Homeowners will refinance for many reasons: to get a cash out, to buy out someone on the title, to consolidate their debt, for a low-rate bridge loan, and more.

Test out this Refinance Mortgage Calculator, and then see if the following tips can save you time and money in your search for the perfect home loan.

5 Tips to Refinance Your Mortgage

  1. Lock in a Cost-Efficient Rate. Ultimately, it is a good idea to lower your monthly payment and re-structure the length of time it will take to pay off your loan. If you are purely looking for a lower rate, according to the Federal Reserve Board, the interest on the mortgage needs to be 1-2% lower than their current mortgage loan rate. Keep in mind that a lower rate isn’t always possible during a refinance, depending on your reason for doing the new loan.
  2. Evaluate the Terms. When it comes to mortgage refinancing, you should always read the fine print. Some lenders may offer lower rates, but with much longer terms. To determine if a loan is worthwhile compared to your current mortgage, multiply what you are currently paying (principle with interest, but not escrow) by the number of months left. Do the same for the refinance option and compare to determine if it is a good fit.
  3. Consider the Benefits of a New Type of Mortgage. If you are looking to refinance your mortgage, a great tip is to check out the variety of loan types lenders offer. Each may have advantages and disadvantages, and one may be a better fit for your situation. For example, if your financial assets have grown or changed, you may benefit from switching to an adjustable-rate mortgage (ARM) or a fixed-rate mortgage (FRM), depending on your unique needs. Don’t forget about property taxes and escrow accounts, which can also significantly impact your monthly payment amount.
  4. Shop Around. The financially savvy homeowner is aware of the many options available for mortgage refinancing. Ask a lot of questions. What looks like a good deal might not be because fees charged may vary. Remember to include closing costs in your estimate of each refinance option.
  5. Refinance with a Mortgage Expert. At First Bank, we are skilled in helping homeowners refinance their mortgages. We are committed to doing our part to help local communities thrive and prosper through financial guidance and banking services. To discuss your mortgage refinance options, contact us today.

Loans are subject to credit approval.

———-
Sources:
http://www.bankrate.com/finance/mortgages/when-to-refinance-your-mortgage-1.aspx
http://www.federalreserve.gov/pubs/refinancings/
https://localfirstbank.com/mortgage/refinancing-calculator/

Ready to talk to an expert?

Find A Location Get In Touch
Share:
First Bank’s Good To Know Logo
Sign up for our newsletter and be the first to know about new tips, insights, and products from First Bank.
First Bank may use this email address to contact you about products, services, and promotions.

You may be interested in...

Compare First Time Mortgage Rates with First Bank When you’re ready to buy a house, it’s easy to get caught up in all of the excitement of shopping and forget about the financial aspect. Once you’ve found the perfect house, the first thing you may be wondering is where to get 20-year mortgage rates, or even 30-year mortgage rates. But you may not know that you have other options. First Bank can help you determine what type of mortgage works best for you, and help structure a loan that meets your individual needs. About 20-Year Mortgage Rates Before we tell you where to get 20-year mortgage rates, let us explain what a 20-year mortgage is, and tell you about all of your options. Twenty-year mortgages are typically offered as fixed-rate mortgages, meaning your interest rate—and your total monthly payment of principal and interest—will stay the same for the entire term of the loan. A fixed-rate mortgage offers a predictable monthly payment, making it easier for you to follow your budget. With fixed-rate mortgages, you also have the option to take them out in 15 or 30-year terms. These other two options could work better for you depending on your financial situation. While a 20-year mortgage helps you pay off your home faster and build equity quicker than longer-term fixed-rate mortgages, a 15-year mortgage will help you pay it off even faster, and pay less interest. However, 15-year mortgages have higher payments than other longer-term mortgages. 30-year fixed-rate mortgages allow you to pay off your loan with lower monthly payments, but since the life of the loan is long, you’ll pay more interest and build equity slower than you would with a shorter-term loan. First Bank offers conventional fixed-rate mortgages in 15, 20, and 30-year terms, and we also offer adjustable-rate mortgages. To learn more about our loan options, or if you’re still wondering where to get 20-year mortgage rates, visit your local First Bank branch. Our loan experts will be happy to teach you more about mortgage loans and rates, or help you structure a loan that meets your needs. *Loans subject to credit approval. 2 min read
Couple smiling at each other signing closing papers on property with realtor Homebuyers: What to Bring to Closing Before your closing date, you should receive a list from your loan officer or agent with everything that you will need to bring on closing day. Here are a few items commonly on that list. 3 min read
What Are 30-Year FHA Mortgage Rates? If you are considering applying for an FHA loan to purchase a home, you may be wondering, “What are 30-year FHA mortgage rates?” If you want to find out what the current average 30-year FHA mortgage rates are, the most accurate way to find out is to visit your local First Bank and ask about our FHA mortgage loans. Determining 30-Year FHA Mortgage Rates Securing a good 30-year FHA mortgage rate depends on a few different factors, including: How much you can put forth as a down payment Whether the loan is fixed or adjustable-rate If the loan is adjustable-rate, your margin Your credit history and current finances What is an FHA Mortgage Loan? The recession experienced in the last decade caused a dip in the housing market. This downward trend of the housing market has led to an increasing popularity of FHA mortgage loans. But before you shop around for what all the current 30-year FHA mortgage rates are, it’s important to know exactly what FHA loans are. An FHA loan is a mortgage that is insured by a government agency called the Federal Housing Administration. By purchasing mortgage insurance, borrowers are often able to secure low interest rates under more flexible qualification requirements. A few key facts about FHA mortgages include: Down payments for an FHA loan can be as low as 3.5%. This is well below the traditional down payment of up to 20%. FHA loans allow for sellers, lenders or builders to contribute to the closing costs on the buyer’s behalf. The lender must be FHA-approved. First Bank is an example of an FHA-approved lender with 30-year FHA mortgage rates. Mortgage insurance is required. This protects the lender from loss as a result of a default and is what opens the door for low down payments and interest rates. Visit Your Local First Bank Today If you want to know what 30-year FHA mortgage rates are, contact your local First Bank representative. Use a loan officer finder to locate a First Bank loan specialist near you and set up a consultation. If there’s no First Bank loan officer near you, simply fill out our online application and a mortgage specialist will contact you to address your needs.* *Loans subject to credit approval. ——— 2 min read
Mortgage Payment Balance What is PITI? [INFOGRAPHIC] The infographic below helps to illustrate how each component is different. We have also provided examples of the average home cost and the associated PITI for the states that First Bank serves. We hope it helps! 1 min read