Are you looking to lower your interest rate and monthly payment or take cash out of your home? A mortgage refinance simply means replacing your existing mortgage loan with a new one. Union Bank's lending pros are your 'go-to' experts in helping you navigate through what is the best option for you.
TYPES OF MORTGAGE REFINANCE
- Interest rate: When rates fall, borrowers with a fixed-rate mortgage may want to refinance into a new home loan with a lower rate. You may also qualify for a lower rate now if your credit score has improved.
- Switch loans: Depending on whether rates are falling or rising, you may want to switch from an ARM loan to a fixed-rate mortgage or vice versa. If you have an FHA mortgage and don’t want to pay mortgage insurance anymore, you could switch to a conventional loan.
- Term: If you want to pay off your mortgage faster, you could refinance into a shorter loan term. Alternatively, extending your loan term through refinance can lower your monthly payments. Our refinance savings calculator can help you play with the numbers.
- Cash out: As an alternative to a HELOC or Home Equity Loan, you can refinance your mortgage for more than you currently own and receive the difference in cash to do with as you wish.
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.