Refinance a home equity loan
When interest rates drop, like they have in recent weeks, you can refinance your home equity loan and save money. Typically, borrowers wait for rates to drop a point before it makes sense to refinance. With loan rates at historic lows, now is the time!
Refinancing entails closing costs and other fees, so it's important to know whether lower monthly payments will offset that cost. Consider how long it will take you to break even. For example, if refinancing costs run you $1,500 and your payments are $100 lower each month, it will take you 15 months to break even. Restructuring your debt into a lower interest rate CAN save you money each month and could save you thousands over the life of the loan.
4 Reasons to Refinance |
1. A lower interest rate |
2. Opportunity to convert all or a portion of your equity loan from an adjustable rate to a fixed-rate loan |
3. Obtain a shorter term loan to build equity more quickly |
4. Extract more cash from your equity |
If you need any additional information about HCU's home equity products contact your local branch today!
