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Should You Refinance Your Mortgage?

No matter the state of the world, your personal finances are likely to be affected by them. And we often have no control if those effects are positive or negative. So, you may be having more trouble than before paying off your monthly mortgage for your Baton Rouge home. Bills have just gotten higher and higher, and now you might be tapping into your savings. This is no way to continue, but what can you do about it? Well, have you considered refinancing your home? It sounds scary at first, but refinancing the mortgage on your Baton Rouge home could actually help you in the long run. Find out more with the professionals at Essential FCU and see how we can help you refinance your own home.

Why Should I Refinance?

There are many reasons why people choose to refinance their homes. But no matter the reason, they should be aware of what might happen should they choose to refinance.

For example, one major reason people choose to refinance is because the interest rates are much lower now than before. So your monthly payments could drop a few hundred dollars if you’re lucky. But remember: you’ll need to factor in new closing costs. Discover more about how this can affect your payments with financial professionals at Essential FCU.

Another financial reason people have is that their credit score is much higher than before. If you had a lower-than-average credit score when you first purchased your home, you probably got higher interest rates. But if you have a higher-than-average score now, there’s a good chance your mortgage rates could go down. A lower rate could save you $1000s over the term of your mortgage.

Lengthening your loan term is another reason people choose to refinance. For example, did you choose a 15-year loan, have paid off a good amount, and now want to pay less? You can always switch to a longer loan to pay less each month. The only drawback here would be you’ll have a mortgage payment for more years. Your choice depends on how you feel about these timelines and if it works for your finances.

There are many reasons why people choose to refinance, but it all has to do with what you’re comfortable with and what works best for you. Discover how our financial professionals can help you make that decision.

What Can Essential Do For You?

At Essential, we offer a number of mortgage options to help you find the best deal for you and your family. But overall, our loans give you:

  • Low down payments
  • Competitive interest rates
  • Flexible terms up to 30 years
  • Fast pre-approval

And more! Take a look at what we can offer you and see how we’re the best choice for your mortgage needs.

Get A Mortgage From Our Baton Rouge Credit Union

Our finances are sometimes the only things that keep us afloat. Don’t take from your savings just to pay the bills. Find out more about your mortgage for your Baton Rouge home and see how Essential Federal Credit Union can help you. Check your rates, apply for a mortgage, or send us an email at eservices@essentialfcu.org to ask any questions you may have. We’re happy to help you get the most out of your mortgage.