If you are thinking about refinancing your home loan, you should first consider what you expect to gain by doing so. There can be many benefits to refinancing. Some common benefits include lowering your monthly payment, locking into a fixed rate, accessing equity in your home, consolidating debt and paying your home off sooner with the money you will save with a lower interest rate. Everyone’s situation is different. Be sure to consult a trusted lender for advice if you are unsure.

If you have a clear understanding of your refinancing objectives, you should calculate how long it will take you to recover your costs. To do so, divide your total costs to refinance by your total monthly savings. You will arrive at the approximate number of months it will take you to recover your up-front costs through savings on the lower payment. If this length of time is longer than you plan to remain in your home, it may not make sense for you to consider refinancing. Always make sure that you will save money in the long term!

What is Involved in a Refinance?
To start, you will need to know what it will cost to refinance. Lenders should always provide you a good faith estimate of what the associated costs to refinance will be. Lenders fees vary greatly, so be sure to compare good faith estimates when selecting a lender. Remember that a lower rate doesn’t necessarily mean that you will be receiving the best deal.

Some costs may include:
• Application fee • Title and insurance fee
• Appraisal costs • Loan processing fee
• Flood report • Credit report

The most important factor is finding a lender you can trust and who will help you navigate the process. Alliance’s not-for-profit status allows us to offer better rates, more flexible terms and lower fees. If you have any questions on if refinancing is right for you, call today at 636-343-7005, ext. 8140!

For more assistance, call 636-343-7005, toll free at (800) 541-6131 or visit us at one of our branch offices, for directions go to www.alliancecu.com.

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