Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

Home Refinance Rates from First Bank


With the country’s average interest rates for 30-year fixed mortgage rates currently at their lowest, now is a good time to consider refinancing your home. Low home refinance rates mean U.S. homeowners are able to have lower monthly payments, more cash in their pockets, or both.

How Does Refinancing Work?

Simply put, you use a new mortgage to pay your original mortgage in full, leaving you with just the “new” mortgage on your home. Even if the terms and interest rates for the new and original loans are different, the property securing the loan is the same.

Should you Refinance Now?

With interest rates at near historic lows, many mortgage experts are saying, “if you’re going to refinance, do it now.” If you’re unsure, then consider U.S. News & World Report’s three reasons to refinance now:

  • Low Interest Rates—While it is possible that interest rates will start to climb again, it doesn’t necessarily mean it will happen soon. So, why not take advantage of current low interest rates? Refinancing is like getting a second or third chance you wouldn’t normally get in most other situations.
  • The Cost of Mortgage Insurance has Decreased—With the Federal Housing Administration reducing mortgage insurance premium rates, new homebuyers and homeowners looking to refinance could save $900 on average.

If you have an FHA loan, you may be able to remove your mortgage insurance payments altogether by refinancing from an FHA loan to a conventional mortgage.

  • The Value of Your Home May be Higher—Though home values have dropped over the years, they’ve recently made a comeback, meaning you are probably in a pretty good position to refinance today.

Although many homeowners are in a better position to refinance now, there are still some issues that might restrict homeowners interested in refinancing.

  • If you’re credit score or credit history needs improvement, lenders may be hesitant to work with you to refinance your home.
  • While refinancing your home can save you money, those rates are separate from the amount of cash needed to complete new deal due to closing costs. These closing costs generally run around 2-5% of the purchase price of your home. This extra cash is an important factor to consider if you’re contemplating home refinancing.

Is refinancing right for you?

While refinancing may be a good option for many homeowners, it’s not necessarily the case for all families or individuals. Before making any major financial decisions about your mortgage loans, use our calculator to find out if refinancing is a good option for you. If you’re interested in learning more, contact one of our loan officers to set-up a consultation at a First Bank branch near you today.*


*Loans subject to credit approval.

———
Sources:

http://money.cnn.com/2015/01/15/news/economy/mortgage-applications-soar/
http://www.nytimes.com/2015/01/20/upshot/its-time-to-think-about-refinancing-your-mortgage.html?_r=1&abt=0002&abg=1
http://themortgagereports.com/17031/mortgage-rates-refinance-equity-harp-streamline
http://money.usnews.com/money/personal-finance/articles/2015/02/05/3-reasons-to-refinance-now
http://www.zillow.com/mortgage-learning/closing-costs/

Trending Topics

Open a Triangle Business Checking Account

First Bank is the largest community bank headquartered in North Carolina and provides local entrepreneurs with the Triangle business checking accounts and other business banking solutions.

Raleigh Small Business Loans

Whether your business is a staple in the community or a budding start-up, First Bank is available to provide the Raleigh small business loans you need to succeed.

Best Business Checking Accounts in Asheville, NC

Whether you are a beginning entrepreneur or seasoned business owner, First Bank will help you determine which business checking account is best, what banking options are recommended, and how to open an account.

Finding the Best Personal Loans in Asheville, NC

If you live in Western North Carolina and need a personal loan, we can help.

First Bank in Asheville, NC: Serving the Local Community

From Biltmore Village to Downtown Asheville to Historic Montford, we serve the Asheville community by providing banking solutions that take you a step closer to achieving your dreams.

How to Switch Banks in Asheville, NC

If you’re unsure if your current bank is meeting your financial needs or are moving to the Western Carolina area, it’s time to think about switching banks.

Best Small Business Bank in Asheville, NC

When starting a business, it can be hard to know where to begin. Selecting a bank for small businesses takes thought and research, but choosing the right one for your business can lighten your to-do list and put your mind at ease.

First Bank: Financing Loans for Businesses

Choosing a bank to finance the right loan for your business is a critical decision. There are loans that cater to the established business looking to expand, and there are loans…

Commercial Financing

Finding the right commercial financing is easier said than done. If you're starting a business or trying to grow, finding the right option can be a tough task. Learn more about different…

Long-Term Installment Loans

First Bank offers long-term installment loans and other types of lending that help small businesses cover expenses. The government-backed Small Business Association (SBA) helps business owners acquire long term loans to help them grow,…