Refinancing Your Mortgage Articles

Learn when to refinance and ways to bring down your monthly payment.

Learn About Refinancing Your Mortgage

Take advantage of market fluctuations and see how refinancing your mortgage can save you money.

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Refinance Your Mortgage with These 5 Tips 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 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. 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. 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. Shop Around. The financially savvy homeowner is aware of the many options available for mortgage refinancing. Ask a lot of questions. 3 min read

Five Reasons to Refinance Your Mortgage Banking professionals suggest mortgage refinancing when homeowners want to replace their current loan with a new one, often to reduce monthly payments or lower interest rates. With a mortgage refinance, your current loan is paid off and replaced with a new one. This can be a great option for borrowers with good credit who want to alter their current loan. But refinancing could be risky for borrowers with less than perfect credit. Check out our list of reasons to refinance and see if you could benefit from refinancing your current mortgage. 5 Reasons to Refinance Lower interest rates—If mortgage rates have dropped since you first took out your loan, you could secure a lower rate by refinancing. Lower monthly payment—Lowering your interest rate could have a dramatic impact on your monthly payment. If you intend on staying in your home for several years, lowering your payment could help you save. Shorten loan term—When interest rates fall, homeowners can often significantly shorten their loan term by refinancing without much increase in their monthly payment. Convert between adjustable-rate and fixed-rate—With adjustable-rate mortgages, your initial interest rate may be low and and then increase over a period of time. Refinancing to a fixed-rate mortgage could allow you to avoid an increase in rate. Cash out to make a large purchase—If you have equity in your home, refinancing enables you to cash out on that equity without taking out a loan, such as a home equity loan. A lot of people will use this cash to pay for home repairs, college tuition, or make a large purchase, such as a car. These types of refinances are typically easy to complete and may even be tax deductible. If you still aren’t sure if a mortgage refinance is right for you, visit our online refinance calculator to see how much you could save, or visit your local First Bank branch to speak with a mortgage specialist. Loans subject to credit approval. ——— Sources: https://www.investopedia.com/mortgage/refinance/when-and-when-not-to-refinance-mortgage/ 2 min read

5 Ways to Get the Lowest Mortgage Rates If you are looking for some of the lowest mortgage rates in North Carolina or South Carolina, First Bank might be able to help. Choosing a mortgage option can be one of the most confusing aspects of the home purchasing process. Especially when you are unsure of how to secure the lowest mortgage rates or best long-term plan to manage your home’s equity. First Bank offers a range of home loan options, from conventional mortgages to construction loans. We also offer guidance and expertise on all things related to home loans, such as our tips and tricks for keeping mortgage rates low. Tips for Keeping Mortgage Rates Low Securing a low mortgage rate isn’t a matter of luck. You can follow these five helpful tips to ensure you get the lowest rate when applying for a mortgage: Improve your credit score: The best tool in a mortgage shopper’s arsenal is their credit score. Lenders often offer lower mortgage rates to borrowers with excellent credit scores. Be honest on your application: Filling out your application accurately and honestly can prevent any delays in the application process. There’s also the added bonus of building trust with your lender. Lower your debt: Your debt to income ratio (DTI) is an important factor when applying for a loan. If your debt is too high compared to your income, you could be subject to higher mortgage rates. Make a large down payment: The more you pay upfront, the better you will looks to lenders. Making a larger down payment also means you owe less over the life of the loan, which could help you secure a lower rate. Choose the right loan term for you: If you have a lot of debt, a longer-term loan with lower payments might be a good option. If you can handle larger payments and want to keep interest low, a shorter-term loan could be ideal. First Bank provides you with some of the lowest mortgage rates available on a variety of home loan options, such as: Conventional Loans Government Loans (FHA, VA, and more) Jumbo Loans One-Time-Close Construction-to-Permanent Loans Dream It, Own It Use our mortgage calculators, visit a First Bank location near you to speak with one of 3 min read

Get a Lower Interest Rate By Refinancing Your Mortgage Today With mortgage rates remaining low, 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. 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. Get a better rate as the market shifts, allowing you to save money over the long term with your new loan. 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 Sources: Locate a Loan Officer | First Bank Refinance Calculator | First Bank Investopedia 2 min read

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

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When to Refinance Your Home Here are some common scenarios where refinancing your mortgage makes sense. 3 min read

5 Reasons to Consider a Home Equity Line of Credit (HELOC) Your home is your most valuable asset and investment. A home equity line of credit can provide many benefits for those with good credit and a chunk of their mortgage paid off. 2 min read

The Impact of Home Ownership on Your Credit Rating If you’re in the market for a home, you’ve probably spent some time cleaning up your credit. After all of that hard work, you may wonder what impact a mortgage will have on your credit rating. 3 min read

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5 Common Mortgage Myths Debunked While it’s important to do your research during the home-buying process, you can’t believe everything you hear. We’ll help you spot the popular mortgage myths and reveal the truth behind them. 5 min read

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