Interest rates are currently near historic lows — and have been for the past year. In a year that’s been anything but typical… the interest rates are also anything but typical! It is the ideal time to see if you might be able to lock in at a lower interest rate and to refinance your current mortgage.
I know the word ‘refinance’ can elicit feelings of confusion or of not knowing where to even start. I worked in the mortgage industry right out of college, but even so – things have changed so much since then that I still feel confused or lost when it comes to mortgage jargon and calculations. Finances can be overwhelming for those who are not experts in the field (which many of us are NOT!). But luckily there ARE experts, who are willing and ready to help!
We took the first step by calling Summit Credit Union. Within 24 hours we were connected with a Mortgage Loan Officer and from there we had an expert by our side for each step in the refinancing process.
They will check your credit and your current loan amount; you will fill out some forms and they will be able to tell you the best rates are for various loan lengths (15 year, 20 year, 30 year, etc). Along with the best rate, you will also be able to see what your payment would be for each of those durations. In our case, we were surprised to discover that by refinancing to a 15 year mortgage – our payment didn’t go up by that much AND we were reducing a significant number of years from our loan. Had we refinanced to a 30 year loan – our payment would have gone down by quite a bit.
Based on your own financial situation, current income, anticipated expenses and so on – you will be able to identify what monthly payment you would be most comfortable with. And either way (whether you reduce the length of the loan, or your monthly payment), you are saving A LOT of money in interest.
The entire process was smooth and we were able to lock in the new rate right away. You can lock in up to 7 days before closing. The Mortgage Loan Officer guided us the entire way and made sure that we had everything we needed. He spoke in a language that we easily understood and made it clear what we needed as far as paperwork and documents.
The closing costs and refinancing fees can be intimidating — but when we realized what the cost was versus the amount of money we were saving, it didn’t even come close. We were able to recoup the closing costs very quickly.
Contact Summit’s Mortgage Loan Department
Our home is likely the biggest investment that we will ever make. And with the mortgage rates as low as they are right now, it’s a great time to refinance your current loan. Eventually the rates are bound to go back up – so if this is something that you’ve been considering, (but haven’t known where to begin) – I encourage you to get ahold of someone at Summit Credit Union to at least explore your options. There is no cost to give them a call and to see what you qualify for and to see what would the most sense for you based on your financial situation. And whether you reduce the length of your loan or reduce the monthly payment, you will be saving A LOT of money!