When mortgage rates are low, it could be a smart time to refinance your home loan. Before you make a decision, visit your nearest Central Bank branch. We can sit down with you and provide the tools you need to make refinancing your home loan as successful and beneficial as possible.
Explore your options and homeownership goals to determine if refinancing your mortgage is right for you, and contact your local branch for more information.
There are several reasons you might want to refinance your home loan. They include:
Lower interest rates don’t just lower your monthly payment. They’ll also help you pay less over the life of your loan. Free up funds for retirement, savings, paying off debt, or meeting other financial goals.
When you refinance your loan to a shorter term, you can reduce the overall cost of interest and make fewer payments over the life of the loan. If you can afford it, making higher monthly payments can help you pay your loan off faster. That frees up funds for other goals, such as retirement.
If your current home loan has an Adjustable Rate Mortgage (ARM), a fixed-rate mortgage can help you lock in a new rate. Fixed-rate mortgages offer stability and protection from rising interest rates and future payment increases.
If you have an ARM, you may want to refinance your loan to get a reduced interest rate that is more stable. Use our rate watch to keep a close eye on current interest rates and receive an alert when they hit your targeted rate. Lower interest rates usually mean lower monthly payments.
In addition to lowering your mortgage rate, you could also choose to consolidate other debt with higher interest rates. By consisting your existing balances to one monthly payment, you can save money over time.
Thinking about refinancing your home loan? Speak with a mortgage loan officer and your tax professional to see if refinancing to a shorter term loan or one with a different interest rate makes sense for you. Use our refi calculator to start crunching numbers to see what you could save in the long run and estimate your new monthly payment.