Refinance Your Home Loanstamp on refinance loan document

The What, Why, and How 

What is a Mortgage Refinance?

Refinancing your mortgage means replacing your existing loan with new one. The new loan pays off and closes your current loan, and starts a new cycle of payments for your home.

Why Refinance Your Mortgage?

When you select your mortgage type, there are several factors that influence your choice, including the economic climate, your credit score, and your annual income. These factors can change over time, allowing the opportunity to make adjustments. You can maintain your current payment schedule, or you can refinance your mortgage if better circumstances arise of which you can take advantage. Evaluate your environmental factors every few years to see if mortgage refinancing is right for you. 

Get a Better Interest Rate
With a better economic climate, loan rates tend to decrease. A loan at a lower interest rate will save you money over the full term of your loan.

Shorten the Term of Your Loan
Your mortgage has a life span, known as a term. Typical terms include 15, 20, 25, and 30 years. You may have opted to make smaller monthly payments with a longer term loan, but an increase in income can now allow you to pay more per month and shorten that overall term. 

Lower your Monthly Payments
Mortgage refinancing is a popular option when interest rates are low. If lower monthly payments are a more feasible option for you, refinance your mortgage and increase your term. Always ensure you are taking advantage of your hard work or good economic circumstances. 

How to Get Started with a Home Refinance

Refinancing your mortgage should not be a difficult or stressful process. The first easy step is gathering the details of your current mortgage, including your monthly payment, your payoff value, and your current interest rate. These can be found on your monthly statement. You can then contact your BMI Federal Credit Union Mortgage Specialist to learn current low rates and options. Call 614.707.4000 or visit any of our branches in Dublin, Columbus, or Westerville.