All mortgage programs are not the same, and it’s important to understand the differences. Whether you're buying your first home, making your next move or simply refinancing, Foothill Credit Union has the terms, features and options designed to make getting a mortgage easier. Let us help you understand all the choices you have when it comes to a home mortgage. (NMLS# 681615)
Refinancing your mortgage can save you thousands of dollars if done correctly. It may be right for you if you secured your current loan at a high interest rate and interest rates have dropped, you want to switch to either a fixed rate or adjustable rate mortgage or want to shorten your loan term.
At Foothill Credit Union, we take the stress of refinancing away by locking in the lowest interest rate offered between your refinancing application and appraisal completion date. This means you can always get our best interest rate despite fluctuations.
Refinancing your mortgage makes homeownership more affordable
When you already have a mortgage and you’re ready to save on your loan, mortgage refinancing is probably the answer for you. At Foothill Credit Union, we are ready to help you through the process.
If you have a high interest rate:
Having a high interest rate is one of the major causes of a high mortgage payment, so lowering your interest rate can help you save on your monthly payments and over the length of your loan.
If you want to switch between a fixed rate or adjustable rate mortgage:
If you want to change your home loan to a fixed rate or to an adjustable rate mortgage (ARM), refinancing is a great way to switch to the type or mortgage you want. A fixed rate loan allows you to keep one rate over the length of your loan so you have a consistent mortgage payment. On the other hand, an adjustable rate mortgage’s interest rate changes over the length of your loan based on the market.
If you want to shorten your mortgage term:
A mortgage term can vary - typically between a 15 or 30 year term.
If you want to shorten your mortgage term, you’ll pay more each month, but you’ll pay less in interest which will save you over the length of your mortgage. So, if you want to shorten your term and save, refinancing your mortgage is a great option for you.
Mortgage Refinance Options
To get started, here's a quick review of our mortgage options. In refinancing, you can choose to switch from a fixed rate mortgage to an adjustable rate mortgage and vice versa depending on your preferences.
Fixed Rate Mortgage: A fixed-rate mortgage loan allows the interest rate on the mortgage to remain the same over the life of the loan. In doing so, your monthly mortgage payment remains consistent and it’s easier for you to budget your mortgage payment.
Adjustable Loans: An adjustable rate mortgage allows the interest rate on the mortgage to fluctuate periodically based on the 1-year Constant Maturity Treasury Index (CMT). The benefit of this option is that your mortgage payment can decrease as interest rates decrease.Go to main navigation