What is Refinancing and How Does it Benefit Me?
Published: October 5, 2018
What is Refinancing and How Does it Benefit Me?
Are you unhappy with the current terms on your home or auto loan? If so, then it may be time to refinance. Specifically, refinancing refers to a process where you take out a new loan with more beneficial terms to replace an existing loan. At Santa Clara County Federal Credit Union, we're proud to offer refinancing options for both home and auto loans.
Benefits of Refinancing
There are many benefits to refinancing when the time is right. Perhaps the greatest advantage is that of saving money over the repayment period of your loan by securing a lower interest rate than your current loan agreement allows. Even a savings of a fraction of a percent in interest can add up big time over the life of a loan. Furthermore, depending on the repayment terms of your new loan, refinancing could also lower your monthly payment and thus free up your hard-earned money for other things.
How to Know When It's Right For You
Because refinancing also comes with some up-front costs, it's important to make sure that it's the right time to refinance before you begin. Generally, if any closing costs or other fees associated with your refinance loan would be paid off (and then some) by the savings you'll enjoy from your new loan, then it's worth it. If you decide to refinance, then finding a lender that will minimize your up-front costs to do so is a must. At County Federal, we do our best to minimize your costs so you can reap the maximum benefits from refinancing.
Another sign it may be worth it to refinance is a situation where you had poor credit when you originally took out your existing loan, and your credit has notably improved since. As a result, you may get approved for a significantly lower interest rate and other favorable loan terms.
Refinancing Through County Federal
If you're ready to explore your refinancing options, County Federal is ready to help. We offer excellent home and auto loan terms that could save you money. Still not sure if refinancing is right for you? Speak with one of our loan specialists today for more guidance. We'd be happy to help you reach the right decision for your needs.
