Did you miss the chance to refinance your home last year? It may not be too late to secure a mortgage rate that could save you money. Low mortgage rates will often lower your monthly payments, helping to secure a better financial future for yourself and your family.

Mortgage rates are expected to begin climbing in 2018, so it’s the perfect time to shop now in order to save later! Thousands of Memphis homeowners are currently eligible for a refinance, and you may be one of them. Orion doesn’t want you to lose out on a lower mortgage rate! Keep reading to find out more about what refinancing could mean for you. To find out more, click here.

What is mortgage refinancing?

When you refinance your mortgage, you are replacing an existing mortgage with a new one. This may be done in order to obtain a better interest rate, or to switch from a variable to a fixed structure. Refinancing is generally advised for homeowners with good credit. If handled irresponsibly, interest rates can actually increase rather than decrease.

When should I refinance my mortgage?

If you are interested in refinancing, run the numbers and see if the time is right for you. Get a comprehensive analysis instantly here.

Who should consider refinancing their mortgage?

If you are a homeowner with good credit whose current mortgage has an interest rate above the national average, you could be a candidate for refinancing. Lenders will also look for collateral, generally in the form of home equity. Most companies will require an inspection and appraisal of the property before approving refinancing.

Loan options

People generally choose to refinance to get a better rate or term, or to obtain money from their home. If you’re considering a refinance, you should take into account a number of factors that can affect a mortgage. A refinance can be a great decision if it will reduce your mortgage payment, shorten the term of your loan, or help you build equity more quickly. But it can also increase debt and deplete any potential savings you have if you plan on moving any time in the near future. You should take into consideration how it may take to break even, or the time it will take for the refinance to pay for itself.  You should calculate this before deciding to refinance.  Find out what your break-even point is here.

Lender type

There are a number of different lenders to choose from when looking to refinance your mortgage, from traditional financial institutions like banks to other alternative types of lenders, such as direct lenders or mortgage marketplaces, who often operate online.

Credit Unions are not-for-profit and offer competitive rates and lower fees.  Orion FCU specializes in outstanding member service, in-house underwriting, a fast and efficient application process, and personal service. Orion also offers specialized products for first-time home buyers. 

Loan offers

writing financial information

There are three main ways to refinance your mortgage. Cash-out refinancing allows a homeowner to take cash out of the home when refinancing.  Another option is debt consolidation, when a homeowner may refinance or consolidate higher rate loan debt into their mortgage. A homeowner can also refinance their existing balance changing the rate, term or both.   

Fixed year terms

Fixed-rate mortgages are normally issued for 10 to 30 years. This type of mortgage is a long-term proposition, and is a good choice for first-time homebuyers, or if you plan to remain in your home for a considerable amount of time.

Adjustable rate mortgage terms

Adjustable-rate mortgages (ARMs) are popular when the fixed rate mortgage rate increases.  This is a loan type that allows the lender to adjust the interest rate during the term of the loan. These loans are generally offered in the 3/1, 7/1, and 10/1 ARMs, where the rates change based on the term and index. 

Make the most of low mortgage rates in Memphis with Orion

Purchasing a home or refinancing your current home is the largest financial transaction that most consumers make.  It’s important that you have a trusted financial advisor.  Orion offers transparency during the process and an easy application experience.  For more information about mortgages or refinancing, visit here for daily rates, a glossary of terms, payment calculators, and more helpful resources. 

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