Get a Lower Interest Rate By Refinancing Your Mortgage Today
With mortgage rates at a near all-time low as of early 2015, whether to refinance or not has been a common question asked among our customers. Read on to learn more about the “the what” and “why” part of refinancing if you’re debating whether or not to refinance your current loans or if you just want to know what refinancing is all about.
What You Should Know About Refinancing Your Mortgage
Refinancing your mortgage* means you pay off your current loan and replace it with a new one.
Reasons to Refinance
- Reduce your current interest rate expense. For example, switching to a 30-year mortgage to lower your monthly payments.
- Consolidate debt by switching from multiple loans to one fixed-rate mortgage, with the goal of leveling out the payment over the loan’s term.
- Get out of, or into, an adjustable-rate mortgage (ARM). ARMs have lower interest rates than fixed-rate mortgages to begin with, but it later leaves you open to periodic adjustments that could result in large interest rate increases. If you built your own home, your bank probably offered you an ARM, meaning that once construction is finished, you might want to refinance that loan in order to switch to a fixed-rate mortgage for your home.
- Finance a large purchase by tapping into your home’s equity. This can apply to paying for your child’s education or remodeling your home. The idea is that you’re investing in something that will add value later on.
Contact a First Bank Specialist Today
Still wondering if refinancing is right for you? Use our calculator to help you decide if it makes sense for your situation. To learn more, contact one of our loan officers to set-up a consultation at a First Bank branch near you.
*Loans subject to credit approval. First Bank is an Equal Housing Lender