We’re living through a unique time – mortgage rates remain at historic lows. But did you know that today’s low rates present an excellent opportunity not just for homebuyers, but for homeowners, too?
Everyone’s situation is different, but for many homeowners, refinancing a mortgage to take advantage of the low interest rates may be a smart money move. Before you make a decision, you’ll want to understand why and when you should refinance. The Mortgage Loan Officers at Oklahoma Educators Credit Union are here to educate you and guide you through the decision process.
WHY CONSIDER IT?
Refinancing your mortgage can help in a number of ways:
- LOWER YOUR PAYMENT. A lower interest rate on a mortgage of the same term as the original could save you thousands of dollars in interest payments over the life of the loan. Refinancing to a longer term will lower payments, too, though we suggest you do not extend the term longer than the remaining term on your existing mortgage unless the interest rate is the same or less.
- LOWER INTEREST COSTS. Refinancing to a shorter term can significantly reduce the overall amount of interest you pay, though your monthly payments may be higher. If there’s a large enough difference between your current interest rate and the lower one you refinance to, you may be able to keep your payments about the same with a shorter term.
- GET CASH FOR OTHER PURPOSES. If you have sufficient equity, you may be able to consolidate higher interest loans to lower your overall cost of debt. Plus, this step could make your interest tax-deductible; check with your tax advisor. Or you could get cash out for remodeling or another venture.
- SWITCH RATE TYPES. Depending on how long you plan to stay in your home and what your current rate is, you many choose to switch from an adjustable rate to a fixed rate, or vice versa.
When it comes to loans, you can count on Oklahoma Educators Credit Union to continue to offer low interest rates combined with high quality member service. Stop by one of our locations today and speak with a Loan Officer about how we could help you keep more of your hard earned money!
OECU is an equal housing opportunity lender.