Refinance

CU Mortgage can help the client determine if refinancing is in their best interest. Counselors offer advice and information on the refinance process, interest rate and financing fees, and the appraisal process

Refinancing is when you apply for a secured loan in order to pay off another different loan secured against the same assets, property etc. If this original loan had a fixed interest rate mortgage which has now declined considerably, then you would like to avail of a new loan at a more favorable interest rate.

Typically home refinancing is done when you have a mortgage on your home and apply for a second mortgage to pay off the first one. While taking the decision to go for the home refinancing option, it is important to first determine whether the amount you save on interests balances the amount of fees payable during refinancing.

Benefits of Home Refinancing
A house is the largest asset you may ever own. Likewise, your mortgage payment may be the largest expense you'll have in your monthly budget. When you refinance your mortgage, you can take advantage of the equity in your home and enable yourself to have While certain factors, like your credit rating and the amount of the down payment that you were able to afford, influenced your interest rate. When you purchased your dream home, the single most important factor to your interest rate is financial environment. When the Federal Reserve enters a rate cutting period, the prevailing rates may become significantly lower than the original interest rate when you purchased your home. By refinancing your mortgage when interest rates are lower, you can exchange a higher interest rate for a lower one, which, in turn, will lower your monthly payment.

Shorten the Length of Your Mortgage when Refinancing Another advantage of home refinancing is that you can shorten the term of your mortgage. This can save you thousands of dollars of interest. Also, if the refinance rate is lower, but you maintain the same monthly payment, you will build up equity in your home more quickly, because more of your payment will be going towards principal.

Exchange an Adjustable Rate for a Fixed Refinance Rate
When interest rates are low, adjustable rate mortgages are the housing market's darlings. However, when interest rates increase, that adjustable rate may not look as sweet. You'll have more security knowing that your monthly payment will remain steady, regardless of the current market environment.

Access to Extra Cash - Cash-out refinancing One way to put more money in your pocket is to tap into the equity you've built in your home and do a "cash-out" refinancing. In this scenario, you can refinance for an amount higher than your current principal balance and take the extra funds as cash. This can provide money for remodeling your home, paying off high-interest rate bills, or sending your kids to college.