Home Refinance 101

Understanding the Benefits and Your Options

Thinking about refinancing your home? Whether you’re looking to lower your monthly payment, pay off your mortgage faster, or access your home’s equity for a major project, refinancing could be the right move.

What Is Home Refinancing?

Refinancing means replacing your current mortgage with a new one—often with better terms. That could mean a lower interest rate, a shorter loan term, or tapping into your home’s value for extra cash.

Why Refinance?

• Lower your interest rate
• The value of your home has increased
• Home improvements
• Debt consolidation
• Build equity faster
• Apply for a home loan that recognizes improved credit score
• Convert to a fixed or adjustable-rate

Your Financial Goals:

What are you hoping to achieve with refinancing—lower payments, quicker payoff, or access to cash for a major expense? Knowing your goals will guide you toward the right refinancing option.

How Long You Plan to Stay in Your Home: If you plan on moving soon, refinancing might not be the best option since it can take several years to recoup the upfront costs.

Current Market Conditions: Mortgage rates fluctuate based on the economy, so it’s important to consider whether now is a good time to refinance based on current interest rates.

Your Credit Score: While refinancing is possible with a range of credit scores, a higher score generally means better refinance rates. Not sure if refinancing is the right move for you? Use our Home Refinance Calculator to explore how refinancing could affect your monthly payments and long-term savings.

Things to Consider

Refinancing can come with closing costs and may affect your credit score temporarily. It’s important to weigh your financial goals, how long you plan to stay in your home, and current interest rate trends.

Why Choose Universal 1 Credit Union?

As a not-for-profit financial cooperative, U1 is here to support your financial success. We offer competitive rates, flexible terms, and personalized service from local mortgage experts who put your goals first.

Ready to see if refinancing is right for you? Contact U1 today and let’s explore your options together. 

mortgageservices@u1cu.org  |  800-762-9555 ext 424  |  NMLS #652486