If you’re considering refinancing your home mortgage, Core Bank is here to help. Refinancing can help you pay less each month, or give you options to pay your home loan off faster by switching your existing mortgage for a new one with more favorable terms.
Helping You Save Money
Wondering how refinancing your home can save you money? Core Bank is committed to helping you find the best interest and monthly mortgage rates to fit your lifestyle. Our knowledgeable team can help walk you through the refinancing process step-by-step. Ask us today if refinancing is the right step for you!
What Is Refinancing?
When you choose to go through mortgage refinancing, you essentially trade your old one in for a new one with more favorable terms. Usually, refinancing will give you a lower monthly mortgage rate, which means you will end up paying less for your home when it’s paid off. Lower monthly rates also mean you have more cash to distribute in your monthly budget or long and short-term savings accounts.
When Should You Refinance?
There are several reasons to refinance, including:
- Switching from an adjustable to a fixed-rate loan (or vice versa)
- Lowering your monthly payments
- Getting cash out of your home equity
- Consolidating debts
- Consolidating a first and second mortgage
Home Refinancing FAQs
When Should I Switch My Type of Loan?
You can switch your type of home mortgage loan whenever you are ready, but there are a lot of factors that go into this decision. Choosing to switch from an adjustable to a fixed-rate loan (or vice versa) largely depends on the current direction of interest rates. It’s best to switch to a fixed-rate loan when interest rates are increasing, but an adjustable-rate loan can be an advantage when interest rates suddenly drop.
Will Refinancing Lower My Monthly Payments?
Refinancing a mortgage will lower your monthly payments by swapping out your old mortgage loan for a new one with more favorable terms. However, sometimes the cost of refinancing may outweigh the benefits. Core Bank can help you through this process and may determine if refinancing is right for you.
Is there a Downside to Refinancing?
Many people refinance a home to get a lower interest rate on their mortgage, but refinancing doesn’t come without cost. Because you are replacing your original loan with a new one, you are required to pay closing costs again. However, these costs are usually outweighed by the benefits of the new mortgage terms, and the upfront fee basically buys you a lower monthly mortgage rate. At Core Bank, we can help you get the best refinance rates that fit your lifestyle.
How Can I Get Cash Out of My Home Equity?
You can get cash out of your home equity by choosing cash-out refinancing, which replaces your existing mortgage with one that is worth more than your home price. This means you can cash out the difference between the loan and the home price and that remaining equity goes into your pocket! This can help you consolidate debts.
Can Refinancing Consolidate a First & Second Mortgage?
Refinancing your home loan can consolidate your first and second mortgage, depending on approval. There are many benefits to combining two existing home loans, including a reduction of payments.
Can I Shorten the Term of My Mortgage?
You can shorten the term of your mortgage loan when you refinance and can have many benefits. Shortening your 30-year fixed loan to a 15-year loan will ensure that you are free from debt sooner. It’s also worth noting that homes with shorter-term loans offer smaller interest rates.
What are the Benefits of Refinancing?
Refinancing can save you money in the long run and can lower your monthly mortgage rate. You can also start saving more when you refinance, and you will eventually pay less for your home.
Find a Core Bank Near You
Core Bank proudly offers personal and business banking solutions made for you. With banking centers in Omaha, Overland Park, and Mesa, we’re here to help you borrow and save confidently. Discover your nearest Core Bank today!
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Contact Core Bank
Want to discuss your refinancing options with a Core Bank professional? Contact us today! We would love to set up a meeting to discuss your options.
Don’t wait until tomorrow to apply for the loan you need today. Get started on the application process now!