05.10.2011 / Should you really refinance?

For most people, refinancing is a big decision. Since mortgage interest rates remain low, refinancing your mortgage could be a smart move. Still, it is a big decision. Before you dive in, ask yourself these three questions to ensure it is the right choice for you.

"Before you dive in, ask yourself three questions."

Why do I want to refinance?
Here are some common reasons for refinancing:

  • Save money. If today’s rates are lower than your current rate, you might enjoy instant savings with a lower monthly payment, plus save long-term on the total interest you will pay over the life of the loan.
  • Improve cash flow. You might be able to turn your home’s equity into cash for everything from debt consolidation to educational costs, a new car or unexpected expenses.
  • Change your mortgage term. You could shorten the term of your home loan to pay it off sooner. That could also save you money on your total interest paid.

What’s my break-even point?
Before making the decision to refinance, you’ll want to determine your “break-event point” – the time it will take you to recoup refinancing expenses, such as closing costs, points and fees with your lower payment.

How does my current mortgage stack up?
Review the rate, terms and conditions of your current mortgage. Check for pre-payment penalties that would add to the cost of refinancing. Visit our Mortgage Center at to apply, use calculators, learn about the mortgage process, check interest rates and more.

For more information on refinancing your existing home, call a First National Bank Mortgage Specialist at 402-602-5300 or 877-687-5626 to discuss your financial situation. Also, check out our Online Mortgage Center at for more helpful resources.

*This article does not constitute legal, tax, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material. For more detailed information on the tax credit, visit or consult your tax professional.

Posted at 08:34 AM | Permalink


I have some credit issues and think I need to maybe deal with one of the smaller banks who have more flexibility in approving people with less than perfect credit.
Posted by Sally Wellington at 02:33 AM, May 8, 2011
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