Refinance Your Mortgage with FFCCU: Ohio's Trusted Partner

Mortgage refinancing involves replacing your current home loan with a new one, typically one that offers better terms such as a lower interest rate or shorter loan duration. This process involves applying for a new loan that pays off your old mortgage, leaving you with a single loan to manage under new terms.

FFCCU can offer you potential savings from lower credit union interest rates and closing costs. We can also take you through all of your choices, including a cash-out refinancing option to access home equity.

It depends on your current interest rate and how much time you have left on your loan.

Rate-and-term refinancing is for optimizing loan terms. The benefits include lowering your interest rate, reducing your monthly payment amount or shortening the loan duration. Cash-out refinancing provides additional cash by leveraging home equity. It is often used for getting an immediate lump sum of cash for debt consolidation, home improvements, or other financial needs.

Home refinancing typically takes 30 days to complete, but the timeline can vary depending on several factors, including loan complexity, a borrower’s credit preparedness and a home appraisal. Regular communication with your lender and submitting documentation quickly can help streamline the process.

Typically, you’ll need to pay closing costs. These costs cover fees such as appraisal and inspection, loan origination and title insurance.

You can refinance a mortgage with less-than-perfect credit, but it might affect your loan terms – meaning a higher interest rate. A co-signer can sometimes strengthen your application by providing a lender with their credit score and income.

You will need to supply your paystubs from the last 30 days. If you are self-employed, you’ll need to verify your income using your last two Federal Income Tax returns as well as profit-and-loss statements. You’ll also need to verify your homeowner’s insurance and provide proof of any investments, including retirement and savings accounts. You are asked to itemize any current outstanding debts, including car loans and credit card debt. Lenders will take your debt-to-income ratio (DTI) into consideration before approving you for a loan.

Refinancing most often causes a temporary drop in your credit score due to the hard inquiry from the loan application. However, the long-term advantages—such as a lower interest rate and improved loan terms—can overcome this temporary impact, potentially boosting your credit score over time as you consistently make on-time payments.

Yes. This is a common reason many of our members refinance. Moving to a fixed rate is often a good decision after the initial period of an ARM ends.

Most lenders allow you to borrow up to 80% to 90% of your home’s appraised value, minus the amount you still owe on your mortgage. The exact limit depends on the lender and your creditworthiness. FFCCU helps you evaluate your loan amounts carefully before proceeding.

Refinancing doesn’t offer direct tax benefits. However, if you use a portion of the loan for home improvements, the interest on that amount may be tax-deductible. Always consult a tax professional for advice specific to your situation.

Yes. However, many lenders have a “seasoning period,” requiring you to wait 6 to 12 months before refinancing. Exceptions exist, especially if market rates have dropped significantly or if you’re switching to a different loan type.

There’s no legal limit to how often you can refinance, but lenders may have restrictions. Additionally, frequent refinancing may incur significant closing costs and impact your credit score. It’s best to assess your goals over a period of time before deciding.

Yes. A cash-out refinance allows you to use your home equity to pay off higher-interest debts. However, this turns unsecured debt (like credit cards) into secured debt, putting your home at risk if you can’t make payments. Consider all your payment options carefully before proceeding.

Refinancing may not be cost-effective if you plan to sell soon, as it often takes a few years to recoup the closing costs via the savings you have from a lower rate. Calculate your break-even point to decide if it’s worth it.

Ohio’s housing market, characterized by relatively stable home prices, may offer favorable refinance options. However, local market conditions, like home value trends and interest rates, can influence your loan terms and loan estimate. FFCCU has experience working with real consumers across a wide range of financial situations and goals.