ABCO FCU will refinance most loans from other financial institutions including mortgages, home equity loans, and vehicle loans. If your goal is lowering your monthly payments, increasing the term, or the convenience of having your loan with ABCO, then refinancing is the answer.
Take advantage of our vehicle refinance special and you could save up to $100/month on your car payment! Transfer your current auto loan from somewhere else, and you could receive 3% APR* below your current rate or more!**
If your current loan balance is $20,000 with a rate of 8.99% APR* for a term of 60 months, your current monthly payment is $415.03 and the total interest paid over the life of the loan will be $4901.80.
Refinance the $20,000 at a rate of 5.99% APR* for 60 months, and your new monthly payment is $386.54 and the total interest paid over the life of the loan will be $3192.40.
Monthly Savings: $28.49
Total Interest Savings: $1,709.40
Your mortgage may have a 30-year term, but not many homeowners stay with the same loan for that long. In fact, the average American refinances his or her mortgage every four years, according to the Mortgage Bankers Association. That’s because paying off your present mortgage and taking out a new one can mean big savings over several years.
Here are some reasons to consider mortgage refinancing:
- To obtain a lower fixed rate. Mortgage rates are historically low. If you took out a fixed-rate mortgage several years ago, chances are interest rates have since dropped, which means refinancing may lower your payments considerably. A $150,000 mortgage with a 30-year term and a rate of 8 percent, for example, carries a monthly payment of $1,100. The same mortgage at 6 percent will have a payment of less than $900 a month.
- To switch to a fixed rate or an adjustable rate mortgage Adjustable-rate mortgages (ARMs) offer lower interest rates initially, but some homeowners find the fluctuations stressful. If rates are on the way up, you might consider locking in at a fixed rate and consistent monthly payment. On the other hand, if you want to reduce your monthly payments and are comfortable with the interest rate changes of an ARM, it could save you money to refinance to an ARM.
- To build your home equity faster. If a recent change in your financial situation has made it possible for you increase your monthly payments, you might want to refinance your mortgage with a shorter term. The higher payments will enable you to pay off your home more quickly and to save substantially on long-term interest charges.
Is mortgage refinancing right for you?
To determine whether refinancing makes financial sense for you, consider these issues:
- How long you plan to be in your home. If you expect to move in a year or two, you may never realize the potential savings you’d get from refinancing. As a rule of thumb, the longer you plan to stay in your current home, the more sense it makes to refinance.
- The prepayment penalty on your current mortgage. Many mortgages carry a penalty if you pay them off early. The amount varies, but it is usually a small percentage of the outstanding balance, or several months’ worth of interest payments.
- Your reduced tax savings. If you claim mortgage interest on your tax return, refinancing to a lower rate will mean that you’ll have less mortgage interest to deduct. You will still save money overall, but your real savings from refinancing may not be as large as you first believed. Consult a tax advisor who can help you understand the tax implications of refinancing.
The break-even point
In the end, deciding whether the cost of mortgage refinancing is worth it comes down to a simple question: “How long will it take before I start to save money?" For help with these questions or to start the process of refinancing your mortgage, please call 856-581-4050.
Home Equity Refinancing
We will also refinance your Home Equity Loan from another financial institution. Bringing your interest rate down even just one percentage point can mean significant savings.
7%APR - Monthly payment $870.70 = Interest over 10 years $29,482.74
6%APR - Monthly payment $832.56 = Interest over 10 years $24,904.26
Savings over term of loan $4,578.48
*APR=Annual Percentage Rate.
** Sorry, no rates lower than 2.49% APR. ABCO car loans excluded. Some vehicles will not be eligible for refinance. Not all will qualify. Rates will vary based on credit worthiness. Normal underwriting guidelines apply.
Mortgages processed by an ABCO affiliate:
Almost Home Mortgage
Licensed by the New Jersey Dept. of Banking and Insurance