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Your American Dream might not include a white picket fence, but we bet it includes a home to call your own. Let’s get you there.

NorthPark mortgages come with:

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Receive $500 off Your Closing Costs

Plus,

No Payments for 30 Days!

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To claim this offer, just mention it at loan closing.

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What Is a Home Refinance?

 

A home refinance is a process through which you pay off your mortgage and replace it with a new one with a better interest rate and possibly new terms. The rates for a refinance are similar to those for new home purchases. Unless you choose to pay some extra down on your principle or take out additional cash, your debt will be roughly the same after the refinance as before. Home refinancing involves closing costs that can be up to 5% of the loan amount and vary by lender and geographic area.

 

How Does a Home Refinance Work?

 

To refinance your home, you will need to provide much of the same documentation required to purchase a home, such as your tax returns, identification, proof of assets, and bank records. The lender will check your credit score and verify your income and employment information. Homeowners choose to refinance for a variety of reasons.

 

• To get a better interest rate
• To lower the monthly mortgage payments by taking out a longer loan term
• To get a shorter loan term with higher monthly payments to pay off the mortgage faster

 

A special kind of home refinancing is available if you want to take out cash. A cash-out refinance lets you pull out money from the equity you have in your home when you refinance. The new mortgage will be larger because you are taking cash from the home's value, so most lenders restrict a cash-out refinance to a maximum of 80% of the home's worth so that your equity doesn't go down to zero. The interest rates may be higher on a cash-out refinance.

 

How Do I Know if I Should Refinance?

 

If you find a lower rate than the one you have on your current mortgage, it may be worth refinancing a home. Compare the money you will save on the mortgage with the closing costs you have to pay to complete the refinance. If the savings significantly exceeds the value, the refinance might be the right move for you. However, other factors, such as how long you plan to stay in the home, should be considered, so you should discuss your specific circumstances with a loan officer to know for sure. Rates change quickly, so if you see an appealing one advertised, check into it right away.

 

Where Can I Learn More About Home Refinancing?

 

Contact Northpark Community Credit Union today to learn more about your options for refinancing your mortgage. We'll give you all the information you need specific to your situation, including how to refinance, the available interest rate, your monthly payments, and how much the closing costs are. Every step of the way from application to closing, Northpark Community Credit Union is by your side.

 

* Subject to credit approval. Based on applicant's credit history. Existing NorthPark loans are not eligible for this promotion.