Get your Mortgage Refinancing Checklist.

Should I Refinance?

Refinancing your mortgage can be a strategic financial decision that may help you secure a lower interest rate, reduce your monthly payments, access home equity, or adjust the term of your loan. This checklist is designed to guide you through assessing your situation, understanding the costs, and choosing the right lender. Assess your current home loan financial situation to determine if you should consider refinancing your mortgage. Ask yourself these questions to assess your current home loan:

1. What is your current mortgage interest rate and how does it compare to current market rates?

2. How much equity do you currently have in your home?

3. Has your credit score changed since securing your original mortgage?

4. Have there been significant changes in your financial situation since your last mortgage agreement?

5. Do you need to consolidate high interest debt?

Determine if refinancing your mortgage is right for you. Check out our blog, "Wondering "Should I Refinance My Mortgage?" [Expert Tips Inside]."

Compare your home equity options in our blog, "Unlocking Your Home’s Value: Refinancing vs. Home Equity Line of Credit"

Benefits of Refinancing

• Reduce your monthly mortgage payments. Lowering monthly payments can free up cash for other expenses or investments.

• Pay off your house faster by shortening the term of your loan. Shortening your loan term can increase your equity, build-up speed and reduce the total interest paid.

• Access cash from your home equity for large expenses. Cash-out refinancing might be beneficial if you need funds for significant expenditures like home improvements, which could also increase your property's value or to pay off other high interest debt.

Discover how cash-out refinancing works and get tips before you apply in our blog, "Cash-Out Refinancing (Tips Before You Apply)"

Looking to reduce your monthly payment? Dive into the benefits of refinancing in our blog, "Reap the Benefits of Refinancing and Slash Your Mortgage Payments"

When Is the Best Time to Refinance Your Home Loan:

The best time to refinance your home loan depends on several factors including market conditions, your personal financial situation, and your long-term goals. For example, if you plan to move soon, the upfront refinancing costs might outweigh the benefits. Ask yourself the following questions to help decide if now is the right time for you to refinance your home loan.

1. Has your credit score improved and by how much since your last mortgage agreement? 

2. How long do you plan to stay in your current home?

3. Have you had a significant increase in your monthly income that would allow for a larger mortgage payment?

4. Are there recent changes in your financial obligations that require reducing your monthly expenses?

5. Do you require funds for significant expenses such as home renovations, educational costs, or debt consolidation?

Wondering if it's too soon to refinance? Check out our blog, "How Soon Can You Refinance a Mortgage?"

Consider the current housing and rate market in your refinancing decision with our blog, "Is Now the Best Time to Refinance? Insights and Analysis"

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Refinancing Costs to Consider

• Application Fee: This covers the cost of processing your application.

• Loan Origination Fee: Paid to the lender for creating the new mortgage.

• Appraisal Fee: Ensures the lender has an accurate value of your property.

• Title Search and Insurance: Confirms the property title is free and clear of issues.

 Questions to ask your lender around refinancing costs

1. Does the lender charge an application fee, and if so, how much is it?

2. What is the loan origination fee, and how does it compare across different lenders?

3. What will the appraisal cost, and is it necessary for your refinancing?

4. What are the costs associated with a title search and title insurance?

5. Does your current mortgage have a prepayment penalty, and how will this affect your refinancing costs?

Experience financial freedom through refinancing, check out our blog, "Refinance Your Home: Unlock Potential and Enhance Financial Freedom"

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Refinancing Tips: Choose the Right Lender for Your Home Loan Refinance

Selecting a lender involves not just finding the best financial terms but also ensuring a smooth and supportive customer service experience. Consider the following when deciding which lender is right for your home loan refinance. 

• Reputation and Reviews: Good reviews can indicate reliable and satisfactory service.

• Interest Rates and Fees: Lower rates can lead to significant savings over the life of the loan.

• Customer Service: Responsive support can make the refinancing process less stressful.

• Loan Terms: Flexible terms can be crucial for adapting to any future changes in your financial situation.
  

Don't make these common refinancing mistakes! Check out our blog, "Refinance Your Home: 5 Common Mistakes to Avoid" 

How to Refinance Your Mortgage with CCCU

Your local credit union is a great choice when it comes to refinancing your mortgage. Here is a list of what you'll need to refinance your home loan with CCCU:

• Your current residence address, or addresses, for the past two years.
• Social Security numbers/date of birth for all borrowers.
• Number of dependents and ages.
• Your employment history for the past two years. You'll need your employer(s) name, address and phone number.
• Income information for all borrowers. You'll be asked to include salary, overtime, bonuses, commissions, interest/dividend, retirement income and any other regular source of income.
• The year you purchased the property being refinanced, its original cost, current loan balance and payment amount (are taxes and insurance included?).
• Bank and brokerage account information, including the institution name and current balances.
• If you own any real estate (other than the property you're refinancing), we'll have some basic questions including, address, current market value, the amount you owe, the amount of rental income you receive (if any), and what your monthly payment is.
• Information about your current debts. We'll ask for the name of the creditor, the account number, the current balance owing and the amount of your monthly payment.
  
  

Let Consolidated Community Credit Union Help With Your Mortgage Refinancing

We hope this checklist will help you ask the right questions and ensure that you are informed and ready when you decide to get your mortgage refinanced. 

Thoroughly evaluate your current and anticipated financial situation against the costs and potential benefits of refinancing. Consulting with a trusted financial advisor can provide personalized insights and help you make the best decision.

If you have questions about mortgage refinancing please contact us, we’re here to help!

Related Helpful Blogs and Resources:

• Unlocking Your Home’s Value: Refinancing vs. Home Equity Line of Credit

• How Soon Can You Refinance a Mortgage? 

• 5 Ways a Cash Out Refinance Can Help [Bonus: 5 Tips Before You Apply] 

• Refinance Your Home: 5 Common Mistakes to Avoid

• Wondering "Should I Refinance My Mortgage?" [Expert Tips Inside]

• Reap the Benefits of Refinancing and Slash Your Mortgage Payments

• Is Now the Best Time to Refinance? Insights and Analysis