At Home In Berks - 9

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FEATURES

It's a Great
Time for a Refi!
By Lindsay M. Kennedy, Branch Manager, Muhlenberg Visions Federal Credit Union

When to Refinance Your Home	

If you've been in your home for five or more years, you've
probably got some equity. And if you've got a little equity, it
might be a good time to refinance your mortgage. Here are
a few other signs it's time for a refi...

You can reduce your interest rate by 1% or more.
Mortgage rates have never been lower, which means
that chances are, you can probably save on your rate with
a refinance. It doesn't need to be a huge difference to be
worthwhile, though. Even a 1% rate drop can save you
thousands long-term.

Consider this: A 15-year, $150,000 mortgage at 5 percent
interest will accrue about $63,500 in interest over the life of
the loan. Compare that to $36,500 in interest at 3 percent
on the same home - that's roughly $27,000 in interest
savings, or close to half!

You need that breathing room
in your monthly budget.

Sending the kids to college? That kind of shift in spending
can really affect your budget. Chances are that a refi will
wind up lowering both your interest rate and your monthly
mortgage payment. So, not only are you saving tons of
money in the long run, you're able to invest in your more
immediate needs.

You can switch from an adjustable-rate
mortgage to a fixed.

If the rate on your ARM is close to increasing, it's a great
time to lock in a fixed rate. Not only will you continue to
save, but you'll also be keeping your monthly payments
predictable. And, while adjustable-rate mortgages typically
start with a lower interest rate, your new, historically-low
rate with a fixed option may be lower still.

Want to refinance?

Here are some things you'll need:
*	 A copy of your deed
*	 Two years W-2 forms (for each borrower)
or 2 years of tax returns
*	 One month of pay stubs (for each borrower)
*	 Payoff balance of your current mortgage
*	 Proof of assets
*	 Abstract of Title

Best of all, most applications can be started online or
even through the phone. That means that you can stay safe
and in the comfort of your own home.

SPRING/SUMMER 2021 AT HOME IN BERKs

9
At Home In Berks

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