Refinancing your home is a big step to take. Before jumping into the refinancing process it is important to know exactly what you are doing, what your end goal is, and what additional details go along with the process. Start by meeting with your financial institution and discuss the questions below before following through with refinancing.
What does it mean to refinance? In short, refinancing essentially means that you are taking out a new mortgage. Refinancing provides an opportunity to change your monthly payment amount, payment term, and/or the interest rate to best fit your current financial situation.
Why should I refinance? There are different reasons to refinance and no set ‘type’ of refinance. Some people refinance for the same amount that they owe but for a lower term with higher payments, others refinance for the same amount but at a lower interest rate. Another reason that individuals refinance is in the case that their income has declined and they are looking to refinance the same amount but at a lower payment for a longer term. Finally, some choose to refinance with cash out where they utilize their equity to pay for things such as home repairs or medical expenses and increase their loan balance.
What are the additional pieces of the refinancing process? Refinancing a home takes a few more steps than simply applying. When meeting with your institution be sure to discuss the interest rate, closing costs, how long you are planning on staying in your current home, and any other associated fees such as appraisal costs, title searches, attorney costs, etc.
Refinancing is a great way to fit your financial situation to your ever-changing life. If you think that refinancing may be right for you contact a mortgage representative at Granite State Credit Union or visit your local branch today to meet with a Branch Specialist and see how refinancing with Granite State Credit Union can help you!
To learn more about utilization of equity visit https://www.gscu.org/loans/home-equity.html