Three Good Reasons to Refinance Your Mortgage

Published on April 28, 2021

Saving more on your mortgage doesn’t need to be difficult. Here are three good reasons to refinance your mortgage: backed by historically low rates and community-based member service, refinancing your home mortgage with TEG FCU has never been easier!

1. To take advantage of lower interest rates

Refinancing a home loan with a lower mortgage rate can help you reduce your monthly payments and pay less interest over the life of the loan. The traditional rule of thumb says to refinance if your rate is at least 2% below your current rate. You might also be able to qualify for a better rate if your credit score has improved. Generally speaking, the better your credit is, the lower the interest rate you’ll receive.

With flexible term lengths up to 30 years and low interest rates, shaving off the excess in your home mortgage is more than possible. See how much you could be saving with some help from the folks at TEGFCU.

2. To shorten the life of your loan

If you have a 30-year loan, you may want to refinance to a 15-year loan to save money on interest. Refinancing for a shorter loan period could decrease the amount of interest you’ll pay over the life of your mortgage and significantly speed up the repayment process. That way, you can start paying off the principal sooner, instead of dedicating monthly checks to interest rates.

3. To convert to a fixed-rate mortgage

If you have an adjustable rate mortgage (ARM), you may want to lock in a fixed rate so that your rate will remain unchanged for the entire length of your loan. Switching to a fixed-rate mortgage can be a good option if interest rates are expected to rise or if you’re looking to simplify your budget knowing your payment will be the same each month.

Contact one of our Mortgage Officers today to get started!