A home refinance loan lets you reduce the interest rate or change your monthly payment on an existing mortgage.
What Is a Mortgage Refinance?
A mortgage refinance replaces your existing mortgage with one that has different terms and a new interest rate.
When to Refinance Your Mortgage
There are many reasons why a homeowner might consider a mortgage refinance:
- If interest rates are lower than when you obtained your existing mortgage, refinancing your home loan could result in a lower interest rate which saves you money and reduces your monthly payment.
- If your credit score has substantially improved from when you signed your existing mortgage, refinancing might let you obtain a lower interest rate and save money.
- You want to change the terms of your mortgage and switch from a variable rate to a fixed rate, or vice versa. Alternatively, you might want to drop a federally-backed loan in favor of a conventional loan from your local bank.
- A home loan refinance can let you to shorten or increase the time you have to pay off the loan (known as the term). A shorter-term would let you pay off the mortgage faster, but would likely have higher monthly payments. A longer term could reduce your monthly payments but increase your overall costs of the mortgage.
- If your home’s value has increased during your ownership, a home refinance could let you borrow more than you currently owe on your existing mortgage. This would give you additional funds in case of financial need (medical debt, student loans, etc.)
Refinance Your Mortgage with Union Bank
We can help you decide if refinancing your mortgage makes sense for you. Our lending experts can explain the pros and cons of mortgage refinancing and walk you through the entire process.
You can contact us online or visit one of our 10 Union Bank branches in West Central Arkansas and the River Valley: Mena, Paris, Wickes, Hatfield, Caulksville, Clarksville, Ozark, Waldron, Booneville, and Russellville.