Refinance your mortgage and save money

Posted by Excite Credit Union on May 1, 2023 12:15:00 AM

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If you're looking for a way to save money on your monthly mortgage payments and consolidate debt, refinancing your mortgage may be a good option. Refinancing your mortgage means that you replace your existing mortgage with a new one. Here are the steps you can take to refinance your mortgage and consolidate your debt to improve your monthly cash flow and reduce the money you are paying on interest monthly:

1.     Determine your goals: Before you start the refinancing process, it's important to identify your goals. Do you want to lower your monthly mortgage payment, reduce the interest rate on your mortgage, or consolidate your debt? Understanding your goals will help you determine which type of mortgage refinance is right for you. To be eligible for refinancing, you'll need to have a good credit score, a stable income, and equity in your home. Excite Credit Union can assist in this process.

2.     Check your credit score: Your credit score plays a crucial role in determining whether you qualify for a mortgage refinance and what interest rate you'll be offered. Check your credit score before you start the refinancing process and take steps to improve it if necessary.

3.     Gather your financial documents: To apply for a mortgage refinance, you'll need to provide documentation such as tax returns, pay stubs, and bank statements. Gather these documents in advance so you're prepared when it's time to apply.

4.     Shop around for lenders: Don't just go with the first lender you come across. Shop around and compare offers from multiple lenders to find the best interest rate and terms. You can use online tools and calculators to compare interest rates, closing costs and other fees. At Excite Credit Union, we offer competitive rates and personalized service to help you make the best decision for your needs. 

5.     Apply for the refinance: Once you've gathered your documentation and found the best rate, you can apply for the refinances.  At Excite Credit Union, we make it easy to apply online or in-person at one of our branches. We'll guide you through the application process and keep you informed of the status of your application.

6.     Close the refinance: If your application is approved for the refinance, you'll need to sign the paperwork and pay any closing costs. Once the refinance is complete, you'll start making payments on your new mortgage. At Excite Credit Union, we will work with you to ensure a smooth closing process and answer any questions you may have. We are local in your community, which helps to make this process smooth.

7.     Use the proceeds to consolidate your debt: If your goal is to consolidate your debt, use the proceeds from the mortgage refinance to pay off your existing debts. This will help you save money on interest and simplify your monthly payments.

Refinancing your mortgage with Excite Credit Union can be a great way to save money on your monthly payments and consolidate your debt. By following these steps, you can make the process as smooth and successful as possible. If you're interested in refinancing your mortgage, contact us today to schedule a consultation with one of our experienced loan officers. We'll help you explore your options and find the best solution for your unique situation.


Topics: Talking About Money, Real Estate