Hello and welcome back to the blog here at Tonawanda Valley Federal Credit Union! We’ve talked a few times about mortgage loans and personal loans at large, and we felt it was time to briefly talked about refinancing your home. Today, we’re going to take a higher-level look at mortgage refinancing if you got your original loan from another lender. Some of this information could be old news to many of you, but enough people don't know that getting a mortgage refinance is possible so we felt it would be best to have a post to refer to.
Here at TVFCU, we aren’t just a banking service. We’re a proud member of the community, offering our members the best rates around for all sorts of loans and interest payments. Our members are our owners and our personalized service is something a big-box national bank can’t give you.
Answering Three Questions About Mortgage Refinance
What is a Mortgage Refinance?
Refinancing your mortgage loan is the process of getting a new home loan to replace an existing one. This new loan can come from your original lender or a new one. When you go with a new lender, we serve to pay off the old mortgage, which fulfills the agreement and closes the account, and binds you to the terms of the new mortgage loan.
Is the Refinance Process Similar to the Loan Process?
The process of refinancing is very similar to the original loan process, however for many people it’s easier and quicker. There’s still a need to apply and go through underwriting, like verifying your credit history, income, and current debt. Then the lender may offer you loan terms and repayment options you can select from. It could take a few days to a little over a month to go through the process. Factors like your home, financial situation and other elements like the type of loan/s involved could influence how long it takes.
How Much Does it Cost?
The cost of a mortgage refinance is dependent on several aspects. Those can include the loan type, your credit score, any incentives or promotions, and your lender. For example, here at TVFCU, we have the lowest rates around! The cost of a mortgage refinance can involve things like closing costs, points, a new home appraisal, and of course, taxes.
Homeownership and the associated mortgage loan and refinance process can lead to many questions. Get in touch with us at TVFCU, we’d be happy to help! You can follow along with our blog where we’ll share posts like this one here and more going forward. You can give us a call at 585-343-5627 or 800-722-8224, or by reaching out via our contact form.