Ready to Refinance? Read This First.

If you're a homeowner who bought with higher rates or an adjustable mortgage, then you may be among those who have yet to benefit from such great rates. Plus, BECU is currently offering a no-origination fee promotion. Is now the time to refinance your mortgage? Learn about the pros and cons.

PRO. Refinancing a home can save you dollars. Lots of them. Dropping 0.25%, or even 0.5% may seem like small potatoes, but a mere $60 a month results in $720 annual savings. Plus, when you refinance January 1 – March 31, 2017, BECU will waive the origination fee*.

CON. Refinancing also comes with a cost: You pay closing fees (minus the origination fee during the promotional period). While you will most likely skip a mortgage payment during the month following the refinance, those closing costs result in dollars that aren't going to your mortgage's principal.

PRO. Choose loan terms that fit your current lifestyle – have an adjustable rate mortgage (ARM) and wish for a fixed rate? There are multiple fixed-rate loans available. Or, you can also opt for another ARM that better suits your current situation. Either way, you're avoiding the origination fee when you refinance before March 31.

CON. Refinancing means the same application process as buying a home: credit check, payroll receipts, proof of funds and more. Consider your financial situation prior to refinancing.

PRO. Not only may you be able to lock in at a lower rate (with no origination fee!), but you may be able to opt for a shorter loan repayment period, too. Generally, the shorter the term, the lower the interest rate. However, it also means you are paying significantly more toward principal each month.

CON. Paying over a shorter loan period could increase your loan payment, and can take funds away from other, important elements to your overall financial plan. Ensure you have a good emergency, retirement and even college funds in place before allocating more money toward your mortgage.

Is refinancing right for you? Make an appointment to chat with one of our mortgage advisors – they have your best interest in mind and can help you make the right decision for your budget. Be sure to schedule an appointment during the no-origination fee promotional period. Want to know more? Learn about our refinance loan types.

Schedule an appointment ahead of time, or, call 800-233-2328.