Customer
Blogs

10.18.2011 / Should you Refinance?

For most people refinancing is a big decision. With mortgage interest rates remain low refinancing could be a smart move. However it is still 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 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 firstnational.com/mortgage to apply, use calculators, learn about the mortgage process, check interest rates and more.

Posted at 09:43 AM | Permalink
Post A Comment
 

The views expressed on this site may not reflect the views held by First National Bank of Omaha or any of its affiliates. The information provided through this website is not a substitute for any personal advice from a licensed professional. Use of any information or advice shall be solely at the user's own risk.

We welcome your comments. All comment submissions will be reviewed prior to being posted. If the comments are posted, they may be removed at any time. Comments will not be approved if they contain, include or involve any of the following: Obscenity; Crude, vulgar or offensive language and/or symbols; Gang signs or symbols; Derogatory characterizations of any ethnic, racial, sexual or religious groups, personal attacks of any kind towards others; Trespass or the violation of other people's rights or property; Illegal (e.g., discriminatory, harassing) or inappropriate activity, behavior or conduct (e.g., inflicting emotional distress); Any other content that is or could be considered inappropriate, unsuitable or offensive, or clearly "off-topic" as determined by First National Bank of Omaha. To protect your own privacy and the privacy of others, please do not include personally identifiable information such as Social Security Number, phone number or email address in the body of your comment.

For account related questions, please log in to First National Online at www.firstnational.com and use the secure email located in Contact Us.