Why Refinance? 3 Refinancing Myths

Why refinance? 3 refinancing myths.

As a homeowner, you might have questions about whether or not you should refinance your home. It is a serious financial decision, and one that must be carefully considered. It will not only affect your present economic situation, but your future as well. However, for many homeowners that are current on their payments and have good credit, it can be an extremely worthwhile decision. Unfortunately, millions of homebuyers are not taking advantage of historically low interest rates, rising home prices and favorable terms, especially if they have a HARP-eligible mortgage from Fannie Mae.

With that in mind, let’s talk about a few scenarios where it might make sense to refinance and refute some myths about refinancing to put you in a better position to make a decision:

Where Refinancing Makes Sense

  1. You’re paying more than 4.5% on your current mortgage: If you got your mortgage several years back, 4.5% might have seemed like a good number. This is not so today. It is very possible to refinance at a rate well below this. However, homeowners should be quick; this might be the final year to secure such a low fixed rate.
  2. You have a 15-year mortgage: If you are getting hampered by too high of monthly payments, refinancing your current 15-year to a 30-year mortgage might make a lot of sense. It will help you lower your monthly payment, so you can reallocate that money for other expenses and investments
  3. You have an adjustable-rate mortgage: Even if your current rate is low, an adjustable-rate can become more expensive later on when rates rise. Refinancing to a fixed-rate mortgage provides stability and avoids surprises later on.

Refinancing Myths

  1. It’s too much work: Refinancing your home loan could help you save tens or hundreds of thousands of dollars over the lifetime of the loan. There are few better investments that will not only help you save now, but in the future as well.
  2. Fees: Some homeowners feel that the number of fees that come with refinancing simply doesn’t make it worth it. Our WAIVE Home Loan Program eliminates many of these pesky fees, so you can find an affordable plan. No appraisal fee, credit report fee or loan origination fee!
  3. It won’t save you that much: You’ll be amazed by how much you can save when you refinance. To get a better idea of how much you can save, please review our refinancing calculators.

If you have a single family mortgage in Miami, Boston or LA, OneUnited can help you refinance your home loan. You might be able to lower your monthly payment and interest rate to save big over the lifetime of your loan. We encourage you to contact us today, so we can help you go over your options.

Elevate your finances with insights, because we all need answers. Sign up today!

Discover the OneUnited Difference.

Already have an account? Log in

Recent Articles

Silhouetted figure recording vocals in a dimly lit studio.
Social Justice

Musical Matriarchs: Black Women Leading Industry

Join us as we spotlight the unmistakable influence of women who have shaped the music landscape throughout history. Dance, rock & roll, and country all have origins within our community, inspiring legacies of innovation and disruption!

A stack of hardcover books with the top one opened on a wooden table and background.
Financial Literacy

7 Finance Books That Will Shift Your Money Outlook

This year, we’re filling our minds with the words and advice of the BEST that personal finance has to offer. Dive into these practical insights, visual guides, and transformative challenges to shape your path to financial empowerment!

A person stands in the center of a 3d maze with two question marks above their head, indicating confusion or the need to make a decision.
Financial Literacy

We Don’t Know What We Don’t Know

SummaryThrough spotlighting Keke Palmer and Ava Duvernay, we explore the challenges of navigating industries with limited access to information and representation. From Keke’s bold approach

It takes 5-minutes to start elevating your finances

See exactly where you’re spending money, how you’re achieving and how you can improve.