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									What to Know About Refinancing Your Mortgage

Is now a good time to refinance your mortgage?                         along with how long you plan to be in your home.
Here are some answers to the commonly                                  Compare these costs against the cost to refinance.
asked questions.                                                       Make sure youʼll save money in the long term.

What are the Benefits?                                                 What is Involved in a Refinance?
There can be many benefits to refinancing. Every-                      Before you move forward with the refinance, know
oneʼs situation is different, so do your homework                      what it will cost. Lenders should provide a good
and consult a trusted lender for advice if youʼre                      faith estimate of what the associated costs will be.
unsure. Some common benefits are:                                      Compare lenders as the fees can vary greatly
> Locking in a lower or fixed rate                                     depending on the institution and consider how
                                                                       these costs play into your long-term financial plan.
> Lowering monthly payments
                                                                       As mentioned before, if you only plan to stay in
> Accessing the equity in the home                                     the home short-term, make sure the costs of
> Consolidating debt                                                   completing the refinance donʼt outweigh the
                                                                       savings. Some costs may include:
> Paying off the home sooner
  to save money on interest                                            > Application fee

> Building equity faster                                               > Title and insurance fee
                                                                       > Appraisal costs
When is a Good Time to Refinance?
                                                                       > Loan origination fee
The answer to this question depends largely on
                                                                       > Discount points
what you hope to gain by refinancing. Whether
the time is right for you is a decision only you can
                                                                       Getting Started
make—with input from a trusted lender.
                                                                       Probably the most important thing is finding a
Adjustable Rate Mortgages or ARMs became                               lender you can trust and who will help you navigate
popular in recent years because it allowed people                      the process. Remember that just because one
to take advantage of initially low rates. However,                     place is offering a lower rate, doesnʼt necessarily
now those rates are adjusting and many people                          mean they will ultimately be the best deal for you.
are finding themselves with payments they canʼt                        Ask for good faith estimates and compare them
afford. If you have an ARM, refinancing to a fixed                     all. In the end, go with someone you trust. Also
rate may be a smart option.                                            make sure youʼre familiar with the terms of
                                                                       your current mortgage. Some mortgages have
Refinancing also is a good option when you can
                                                                       prepayment penalties.
obtain a lower interest rate. However, consider
how much youʼll save on your monthly payment

               This information is compiled courtesy of West Community Credit Union in Brentwood, OʼFallon and Kirkwood.
                                   For more information, contact us at (636) 720-2400 or (800) 500-6860.

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