Summary
Whether you’re looking to lower your monthly payments, shorten your loan term, or tap into your home’s equity, refinancing your home loan can be a smart way to align your finances with your goals
Let’s break down what refinancing is all about and how it might benefit you.
What Is Refinancing?
In essence, refinancing is the process of replacing your current mortgage with a new one—usually with better terms. This might mean securing a lower interest rate, switching from an adjustable to a fixed rate, or even accessing your home’s equity for other financial needs.
Refinancing essentially resets your loan, allowing you to align it with your current financial situation and goals.
Why Is Refinancing Beneficial?
Refinancing offers several potential benefits that can improve your financial health.
- Lower Monthly Payments: By securing a lower interest rate or extending your loan term, you can reduce your monthly mortgage payments, freeing up cash for other priorities.
- Save on Interest Over Time: Refinancing to a shorter loan term with a lower rate can significantly reduce the total interest you’ll pay over the life of the loan.
- Access Equity: If your home has appreciated, you can refinance to pull out cash for renovations, education, or other big expenses.
Factors to Consider When Refinancing
Before jumping into refinancing, it’s important to weigh several important factors.
- Closing Costs: Refinancing comes with fees, such as appraisal and credit reporting costs. At OneUnited Bank, we help you save at least $1,500 in closing cost savings.*
- Loan Term: Decide whether you want to extend your term for lower payments or shorten it to save on interest. Keep in mind that extending your term may increase the total interest you pay over time while shortening it could mean higher monthly payments but less interest overall.
- Credit Score: A higher credit score can qualify you for the best rates, so check your credit or build back your credit before applying.
- Timing: If interest rates are trending low, it could be the perfect time to refinance and lock in savings.
Curious as to whether interest rates are high or low right now? Learn more on the 411 of interest rates to help you make the right decision.
We Make Refinancing Easy
Refinancing is a big step and can be intimidating. Rest assured, we are here to help you along at each step of the process.
At OneUnited Bank, we understand that every homeowner’s needs are unique. That’s why our Loan Consultants provide personalized guidance to help you navigate your options with confidence.
Here are two ways we strive to make the process easier for you:
- Competitive Rates: Choose from 30, 15, or 10 year fixed-rate options designed to fit your budget.
- Online Convenience: Apply online in minutes with our easy application—no credit check is required to get a rate quote, or reach out to one of our loan consultants to learn more about your situation.
Refinancing can be a game-changer for your finances, giving you the flexibility to save money, reduce stress, and achieve your goals. As you look to refinance, take a look at interest rates, your credit score, and trusted lenders such as OneUnited Bank which offer beneficial lending options for our community.
Let’s work together to reach your long-term financial goals!
*Terms and Conditions: $1,500 Includes appraisal, credit report and other lender fees. This promotion is for applications received to purchase or refinance a single family property (1-4 units), including investment property, in OneUnited Bank’s lending areas in California, Florida, and Massachusetts. Loan and credit qualifications apply. OneUnited Bank reserves the right to cancel this promotion at any time. Speak with a OneUnited Bank Home Loan Consultant for details.
