Thinking about refinancing your mortgage?

Sponsored - If so, you’re in good company. With mortgage rates reaching historical lows in 2020, mortgage refinancing activity reached its highest annual total since 2003. While rates remain relatively low, now might be a good time to consider whether refinancing may benefit you.

  • What is refinancing? Refinancing is the process of getting a new mortgage by changing the terms of the one you already have on your home. You might be thinking of refinancing your mortgage for a few reasons such as shortening the length of your loan, reducing monthly mortgage payments, or getting cash out for a home improvement project or to pay off higher-interest debt. Your first loan is technically paid off through the refinancing process and a second loan is created in its place.
  • Does it make sense for your budget? It’s important to crunch the numbers to determine if refinancing is right for you. There are many financial decisions involved in refinancing a home – equity, income, and credit status are just a few of the factors lenders consider. First Commerce provides a variety of online mortgage and refinance calculators that can walk you through different budget scenarios so you’ll have a better sense of how refinancing could work for you.
  • How long do you plan to stay in your home after you refinance? If you plan on selling your home soon – within the next 5 – 7 years – it may be difficult to recoup the costs associated with refinancing. Selling too soon after refinancing means you may not live in your home long enough to capture the savings benefits of lower rates. Plus, you’ll still owe any fees associated with the new loan. Most refinances can take up to a few years to break even and begin saving you money.
  • Is refinancing worth the cost? Every financial situation is unique, and it depends on your financial goals. The best place to start is to talk with a mortgage lender you trust who will listen and help guide you through the pros and cons specific to your goals.

Want to learn more about refinancing your home? We can help. Visit us at First Commerce Credit Union offers helpful online resources and experienced, local Mortgage Lenders who will help you every step of the way.


*All mortgages are subject to our standard underwriting criteria, LTV limitations, lien position, property use and location – ask your Lender for details. Rates are subject to change. Terms and conditions are subject to change without notice. Insured by NCUA. Equal Housing Opportunity lender. NMLS# 774895.