The benefits of refinancing
During this period of economic uncertainty, refinancing a home may provide immediate relief to cash-strapped borrowers.
Should you take out a new loan on your property? Consider the benefits of refinancing: lower interest rate (APR), a shorter payoff term (to pay-off your home faster), consolidating high-interest credit card debt, or using equity to fund your home improvement projects. A refinance could also decrease your monthly payments, save on mortgage interest throughout your remaining term, and eliminate mortgage insurance.
Refinancing makes sense when homeowners plan on remaining in the home long enough to recoup closing costs. These fees generally add up to approximately 2% to 5% of the loan amount. In many cases, these costs can be rolled into your new loan amount, reducing out-of-pocket costs for the refinance.
While refinancing may sound like a viable solution, there are times when refinancing can be tricky, especially if your credit score is less than ideal. It is best to speak to a professional. At Cardinal, we can help you weigh the pros and cons, explain the process, assess your personal situation, and set you on a path to a brighter financial future.
In most cases refinancing still makes sense even with the other costs associated with appraisals, title services, recording, taxes, and other variables. Here at Cardinal, we offer contactless or limited-contact closings, life-time loan servicing, and a simple, streamlined process.
You are more likely to garner a better rate on a mortgage if your credit score is in good shape. Ideally, a score in the mid-700’s or above, will serve you well. Keeping existing debt to a minimum will also help you qualify for a great rate, as will a steady source of income.
Visit our website at CardinalCU.com to begin the application process, review rates, or set up a FREE consultation.
Cardinal is a member-owned, full service financial institution open to anyone who lives, works, worships or attends school in Lake, Cuyahoga, Geauga, Ashtabula, Portage, Summit, Mahoning, Trumbull or Columbiana Counties.