You might be one of many Americans who could benefit from refinancing your home.
About 3 million borrowers could save at least $200 a month by refinancing. By refinancing and
locking in a better rate on your loan, you could reduce your monthly payment and save
thousands of dollars in interest on the life of your mortgage.
A lower interest rate could also allow you to build equity in your home more quickly. If you’re
considering refinancing, your lender will run a copy of your credit report.
Items to bring with application
- Copies of previous two years’ W-2 forms
- Copy of two most-recent pay stubs
- Three months’ worth of the most recent statements for checking/share draft and
- Copy of title insurance policy
- Copy of current homeowners insurance policy
- Copy of survey done for your last closing if available
- Payment method for the appraisal and credit report
- Social Security numbers of all applicants
When you refinance, you close your existing mortgage and create a new one. The approval
process to refinance is similar to the process of obtaining your original loan.
The specialists at your credit union will consider your income and debt, credit score, and other
factors affecting your financial situation.
Your new interest rate will be based primarily on your down payment and credit score. When
considering a refinance, you also want to understand your break-even point: Weigh the costs of
refinancing against how much you’ll save each month to know when you will recoup costs over
the length of your new loan.
Resource One occasionally offers a Mortgage Refinance Class to educate homeowners on
what they can expect when refinancing. If this topic interests you, take advantage of this class
and use this time to ask our Mortgage Professionals any questions you have.