Interest rates are rising; however, there is still time to refinance your home loan to lock in an interest rate that is still at historically low levels.
The most popular reason consumers choose to refinance their home loan is to obtain a lower fixed rate. For example, if you purchased a home more than five years ago, today’s interest rates might be a full point or more lower than your current loan.
Reducing your interest rate could lower your monthly payment by several hundred dollars. You could also choose to reduce your loan term, such as converting to a 10-year or 15-year loan with a similar monthly payment while repaying your loan more quickly.
Cash-out refinancing is also a choice for homeowners who are planning a large purchase such as home improvements, a car or college tuition. With a cash-out loan, you increase your loan amount at a lower interest rate than with a traditional home equity loan.
If you have an adjustable-rate loan, refinancing to a fixed-rate loan can help you lock in at today’s low rates as a hedge against future rate increases. Refinancing is also a popular option for borrowers with a balloon payment loan.
Just like your original home loan, there are costs for refinancing your loan, such as application, title and appraisal fees. Many of these fees can be rolled into the new loan, reducing the amount you need to pay at closing.
Choosing whether to refinance your home loan and selecting the right loan for you can be tricky. That’s why Clay County Savings Bank’s home loan team is here to help. Our team will answer your questions and guide you through the process quickly and easily.
Our lending decisions are made locally and our loans are serviced right here at your community bank. Our home loans come with competitive rates and flexible terms to help you select the right loan for your needs.
For more information, check out our Home Loans online or call the loan department at (816) 781-4500.