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Is Now a Good Time to Refinance Your Home?

Posted in
Updated September 10, 2020 2:49 PM
Refinance A Home

If you’re looking for ways to save money during the pandemic, the answer could be right above your head (quite literally). You might be seeing your friends talk about refinancing their mortgages on social media or read news articles that are circulating about low mortgage rates, leaving you wondering if refinancing is an option for you. No matter what others are doing with their loans or what the news is suggesting, it’s important to do what’s best for you and your financial situation at the end of the day.

Refinancing Could Save You Money
It’s no secret rates are historically low – much lower than they were even a year ago. Many people are refinancing their homes and other loans, even if they just took out a loan last year. By doing so, some have been able to save on their monthly payments, even after rolling in closing costs. Some have even been able to refinance with a shorter term (length of payback time), and their payment either stayed the same or, in some cases, is lower than their current payment.

But what does that mean for you? Depending on the rate that you currently have, you might be able to refinance with a shorter term and your payment will either stay the same or may be lower than your current payment. In some instances, your payment may go up, but you could save money in the long run. Regardless, we can review what will work best for you and see what is most beneficial for your financial situation.

Determining if Now is the Right Time to Refinance

Before jumping on the refinancing train, it’s important to review a few key factors that could indicate the time might be right to refinance. When it comes to rates, we suggest considering a refinance if the interest rate you receive is at least 1% lower than your current rate. The lower the new rate, the faster you could break even on the closing costs you’ll pay on your refinanced loan. These are figures we can review with you to determine how a new rate will affect your situation. 

Sometimes, a refinance isn’t the only way to save money over the length of your loan. For example, if we see that a refinance would increase your payment but shorten the term of your loan, we can take the amount of that increase and add this additional amount to your principal payment you currently have. From there, we can calculate if you could save more money by just increasing your monthly payment each month and avoiding closing costs on a refinance. If you find yourself in a challenging financial situation in the future, you would also have the additional flexibility to stop the additional payment and save the hassle of redoing your loan again. 

Figure 1 shows an example of someone’s possible current situation. In Scenario 1, the member has a 20-year term and their monthly payment amount is $554.60. Instead of refinancing, they add an additional $150.00 to their monthly payment (for a $704.60 total payment each month). They’ll pay off the loan in 20 years and pay slightly more in interest over that term, but less in overall payments. In Scenario 2, the member is refinancing at a lower rate and for a 15-year term. Their monthly payment is nearly identical, but they’ll pay off the loan in 15 years, resulting in lower interest payments but slightly higher total payments.

Figure 1

Where to Begin
If you would like to learn more, we can help you work through these calculations and make the best decision based on your unique goals; it’s free and does not affect your credit. We can talk through your options by phone at a time that’s convenient for you.

If you are already certain a refinance is for you, you can also apply online. We will honor the rate at the time you apply, even if rates increase before we contact you. 

What to Expect When Refinancing Your Home With CCU

First and foremost, we believe in providing you the highest level of service. Even though rates are at historic lows and volumes of refinance requests are high, you can expect us to typically reach out to you after submitting your online application within 5-7 business days.

When it comes to the refinancing process, it will generally take between 45-60 days from start to finish. This includes the wait time from when you submitted your application to finalizing all paperwork. It can be delayed by title work or the appraisal depending on the volumes other vendors are experiencing during this time.

Ready to Get Started?

If refinancing your home is of interest to you and you would like to see if it will save you money, call us or apply online today. For additional questions, please contact us, and we will be happy to assist you. 

What Our Members Have to Say About Their Recent Mortgage Refinance

“Even during a pandemic and working from home, our loan officer was nothing short of amazing! She guided me from start to finish, seamlessly via phone and email and answered every question I had! I am so glad we went through CCU for our mortgage refinancing!”

– CCU Member

“Great process, great people, great rate. Reduced our term by three years with the same payment, with no out-of-pocket expense and the satisfaction of knowing our mortgage is now held and serviced locally. What could be better? We're very pleased, and thank all involved for making this the most painless process ever.”

– CCU Member

Equal housing lender. Membership eligibility required. Approval for financing is subject to lending guidelines and credit qualifications. The rate and term you receive will be determined by your credit history. Must be a refinance from another institution.


What to Expect While Visiting a CCU Lobby During the COVID-19 Pandemic

Posted in
Updated August 11, 2020 4:30 PM
What to Expect 8 20

In March, we closed our lobbies to help prevent the spread of COVID-19 in all three of our markets. In May, we began to welcome members back into some of our lobbies after we implemented careful precautions to keep our members and team safe. If you have yet to visit one of our open lobbies or are curious about how we’re moving forward together during the pandemic, you can learn more about what to expect while visiting a CCU lobby during the COVID-19 pandemic below.

Safety Precautions Inside the Lobby

As we carefully monitor the evolving situation, we are gradually and strategically opening up our lobbies with limited services. We encourage you to visit us inside an open lobby if you have a more complex transaction. Before visiting us inside the lobby, please note the following precautions are in place to help protect our members and teammates during the COVID-19 pandemic:

  • Face masks are required when inside any branch in NY, PA, and NC
  • Plexiglass shields have been installed at all member representative stations
  • Approximately half of our member representative windows will be open
  • Social distancing is required
  • Only limited services will be provided (teller transactions only; coin machines are now available at some branches – please call us to find an available one near you)
  • The number of members inside the branch at any one time is limited, which may lead to longer wait times.

To find an available lobby near you, please click here

Other Convenient Ways to Complete Your Transaction

While using the lobby is a great option for assistance with your transactions, we also offer other convenient ways to complete your transactions. If you have a simpler transaction, such as a deposit or withdrawal, we recommend using the drive-thru or a local surcharge-free ATM. Additionally, with digital banking, you can perform almost all of your banking transactions from the comfort of your own home using your smartphone or computer. From paying bills to depositing checks, you can safely and securely bank from home whenever you need. Learn more about managing your money from anywhere here.

We Look Forward to Serving You

Whether you choose to visit us in the lobby, in the drive-thru, or remotely for your next transaction, we look forward to serving you – now and in the future. If have any questions or are unsure about the best way to conduct a transaction, please contact us for assistance.