Mortgage Refinance

Refinancing a mortgage means replacing your current home loan with a new one to get better terms. Homeowners often refinance to lower their interest rate, reduce monthly payments, change the loan length, or cash out their home equity.

Refinancing your mortgage can help align your home loan with your current financial situation and goals. For example:

• Longer-term refinancing can reduce your monthly payment, freeing up cash for other priorities.

• Shorter-term refinancing can lower your interest rate, help you build equity faster, and pay off your home sooner, especially useful if you plan to sell sooner than originally anticipated.

Refinancing may also make sense if your financial situation has improved. A higher credit score can qualify you for a lower interest rate and more flexible loan terms.

You can refinance both your primary home and a second home. The process is similar, but lenders may have stricter requirements or higher rates for a second home compared to your primary residence.

When you refinance a mortgage, it comes with closing costs similar to your original loan. These can include application and lender origination fees, appraisal fees, title search and insurance, credit report fees, and attorney fees. Overall, refinancing costs typically range from 2–6% of your loan amount, so it may not be worthwhile if your projected savings are less than the total closing costs.

Yes. A cash-out refinance lets you replace your existing mortgage with a larger loan and take the difference in cash. This option is most beneficial if you’ve built up significant equity in your home or if your property’s value has increased substantially.

Homeowners often use cash-out refinancing to fund home improvements, consolidate debt, or cover major expenses. Keep in mind, though, that it usually increases both your loan balance and monthly payments.

To qualify for refinancing, you must be a homeowner with a mortgage in good standing and a member of Freedom Credit Union.

Membership is open to anyone who lives, works, attends school, or volunteers in Bucks, Chester, Delaware, Montgomery, or Philadelphia Counties—or who is related to a current Freedom Credit Union member.