Get more out of your home
Historically low interest rates make this an especially good time for Kentucky homeowners to consider refinancing their home loan. Refinancing your mortgage at a lower interest rate can save you significant money by lowering your monthly payment or allow you to pay it off sooner.
For example, take a 30-year $200,000 loan at a 4.5% interest rate. Refinancing to a 2.25% fixed interest can save you $35,000 over the life of the loan, while refinancing it to a 15-year loan can save more than $130,000. Even when you factor in loan origination and closing cost fees, it can still be worth it to reduce your monthly mortgage or convert to a shorter loan.
If you have a home renovation in mind or need funds for another major expense, a cash out refinance can be another option to tap into the equity of your home.
Talk to a CVNB about how to take advantage of today’s low interest rates and your home loan refinance options.
Find your lender
Can refinancing your current mortgage save you money? Check out this video with our Mortgage Specialist, Wayne Short.
FAQs
Q. When should I refinance my mortgage?
A. You could consider refinancing your mortgage for several reasons, such as; Utilizing equity in your home. Meaning you owe less than what your home is worth, the difference between what you owe and the value of your home is your equity. You can refinance and take “cash out” for use. Shorten your loan term to pay it off quicker, or lengthen your loan term for a more manageable monthly payment.
If you can reduce your mortgage interest rate by 1% or more-- it may make financial sense to refinance. Example, your mortgage rate is currently 4.50%, but typical mortgage rates are currently 3.0%, the different of 1.5% is definitely an opportunity to save money when you refinance.
Q. How much does it cost to refinance my mortgage?
A. Typical closing costs, the amount you pay when you finalize the loan, will range from $2500 to $3500, but every transaction is different. The costs of a refinance will differ on each transaction. It depends on the loan amount, type of loan, appraisal cost, waiver, escrows, and other loan details. Most of the closing costs can usually be included in the loan refinance to make your out-of-pocket expense less.
Q. How long does a refinance take?
A. The average time necessary to originate, process and close a refinanced home loan is typically 30 to 45 days.
Q. What does CVNB require for me to refinance?
A. Documentation needed will depend on the type of loan and each borrowers’ unique circumstances. But generally, items needed to process a home refinance will be things such as, recent pay stubs, bank statements, tax returns and other identification documents. Your lender will walk you through what documents you need during the application process.
Open a Home Equity Line Of Credit
Need funds now for a large expense or want to have cash ready for a future project? Borrow as you go from a line of credit secured by the equity in your home with a CVNB HELOC!