First Independence Bank wants you to know about refinancing your home
Obtaining a new home mortgage to replace your original home mortgage is known as refinancing. This process of refinancing is done to give borrowers better terms and rates on their respective home mortgages. In these often uncertain economic times, punctuated by high interest rates, making required payments on time can be challenging.
For many individuals in such situations, the answer may be to refinance. But not so fast! There are countless horror stories across America about individuals who have refinanced their homes without first gaining the proper information. Not having accurate and up-to-date information can be one’s worst nightmare for that once cherished dream home. First Independence Bank believes that finding the right refinancing program can give one the boost needed to reach financial goals faster, and with the peace of mind/solace that you can stay on budget and above water. Therefore, First Independence is committed to making your mortgage experience a great one.
It can lower your monthly payment… Refinancing at a lower rate can help you reduce the amount of your monthly payment and the overall amount of your loan.
It can get you out of an adjustable rate loan… Replace your adjustable rate loan with a fixed rate. Rates will go back up, but don’t let your rates follow.
It can consolidate your debt… Roll all of your monthly bills into a single low monthly payment. You will lower your interest rate on all debt and make managing your finances much easier.
You can get cash out… Access the money in your home and put it towards home improvement, college tuition, travel, or other investments and goals.
It can reduce your mortgage term… You will build equity faster and take less time paying off your home.
Does it sound too good to be true?
Like many things in life that sound too good to be true, there may be associated and hidden risks. One such risk in refinancing your home may be the penalties you could incur as a result of paying down your existing mortgages. In many mortgage agreements — perhaps in the fine print — some mortgage companies/banks have a provision to financially penalize you thousands of dollars for refinancing.
In essence, there’s just a lot to consider when one is pondering whether to refinance a home. You should always seek the advice of a highly recognized and respected home mortgage expert to answer such questions as: When can I refinance my home? How can I take cash out a portion of my home’s equity? How can I avoid balloon payments? What will it cost me to refinance my home?
If you are unsure of the aforementioned questions, and other issues surrounding whether or not to refinance your home, call Julie Krumhotz, branch manager/senior loan originator, NMLS#130833. Her email address is jkrumholz@firstindependence.com. She can also be reached at 586-416- 5750, ext. 2114.
First Independence Bank believes that consumers should be knowledgeable in all banking and financial matters, including residential mortgage loans and refinancing. Established in 1970 as a community development financial institution, First Independence continues to make dreams become realities for its community, citizens and businesses. First Independence Bank is an equal opportunity lender and member of the Federal Deposit Insurance Corporation.
For more information about all banking and financial products and services offered by First Independence Bank at its three area branches, call 313.256.8400, or log on to www.firstindependence.com.