Mortgage rates are constantly changing and the loan you acquired just a few years ago might be a lot cheaper today. Refinancing is a great way to take advantage of today’s lower rates and pay less for your home. However, Refinancing Home Loan products means you will have to pay some of the same fees you paid when you initially moved into the property. These closing costs can equal thousands of dollars if you get your loan through a traditional bank. Most people can save money by refinancing with a credit union.
Credit unions are different from banks. They answer to their members, not stock holders, so their rates are typically more favorable to customers. If you are thinking about refinancing your mortgage to lower your monthly payment or to get some cash out of your home, you should talk to a representative from your local credit union before you sign a new note with a bank. A simple conversation with a credit union representative could save you a lot of money in interest and fees.
A small percentage difference can mean a lot over two or three decades. This is why shopping around for the best rates is so important. After all, you probably want to refinance to save money. Choosing a loan product prematurely can mean paying more than you need to over the course of the mortgage. When Refinancing Home Loan products, credit union representatives, typically go over the costs and benefits with members so they know how long it will take to recoup the fees and closing costs. It’s important to select the mortgage with the shortest time frame.
An experienced representative from Pearl Harbor Federal Credit Union can help you evaluate your needs and choose the best option for your mortgage loan. If it makes sense to refinance right now, your credit union can give you excellent rates and help you avoid the disappointment that often goes along with refinancing through a bank. You’ll know the fees before you get too deep into the process so you can judge for yourself whether or not you’ll be getting a good deal. If you have any questions, you can count on your credit union representative to answer them for you.
