8 Reasons Why Refinancing Your Home Can Be a Smart Move

Refinancing your home is more than just paperwork. It’s a financial strategy that can help you save money, reduce stress and achieve your goals. 

At Compeer Home, we’re here to guide you through the process. Here are the top reasons why refinancing could benefit you this year.

1. Lower Your Interest Rate

Refinancing to a lower interest rate can significantly reduce your monthly payments and save you thousands over the life of your loan. Even a small reduction in your rate can make a big difference.

Tip: Keep an eye on market rates and consult a mortgage expert to assess your options.

2. Shorten Your Loan Term

Switching from a 30-year mortgage to a 15-year term allows you to pay off your home faster and save on interest. While your monthly payment may increase, the long-term savings can be substantial.

3. Gain Stability with a Fixed Rate

If you have an adjustable-rate mortgage (ARM), refinancing to a fixed-rate mortgage provides stability and protects you from rising interest rates. Conversely, if you’re planning to sell soon, an ARM might lower your short-term payments.

4. Lower Monthly Payments

Refinancing can reduce your monthly payment by securing a better rate or extending your loan term. This helps improve cash flow, but keep in mind extending your term may increase total interest paid.

5. Access Home Equity

A cash-out refinance allows you to tap into your home equity to fund renovations, pay off high-interest debt, or cover significant expenses. Use this option responsibly to avoid financial strain.

6. Eliminate Private Mortgage Insurance (PMI)

If your home value has increased and you’ve built 20% equity, refinancing can help you eliminate PMI, saving you money each month. An updated appraisal may be required.

7. Consolidate Debt

Refinancing can simplify your finances by combining high-interest debts into a lower-interest mortgage payment. Be cautious, as this turns unsecured debt into secured debt tied to your home.

8. Remove a Co-Borrower

Refinancing is a practical solution for removing a co-borrower after a divorce or change in ownership. It ensures financial obligations align with your current situation.

Is Refinancing Right for You?

Refinancing isn’t a one-size-fits-all solution. Consider closing costs, your financial goals and how long you plan to stay in your home. Additionally, calculate your break-even point, the time it takes to recover refinancing costs through savings.

Refinancing with Compeer Home

As a cooperative, clients receive more than just high-quality service when they partner with Compeer Home. 

Benefits of lending with a cooperative include the option to become member-owners with access to member benefits and annual patronage checks* just for doing business with us.

We also allow clients the option of adjusting their interest rates through a loan conversion** instead of a traditional refinance, saving them time and money.

Learn more about how refinancing  with Compeer Home can bring you closer to reaching your financial goals.

* Patronage allocations, redemptions and payments remains at the discretion of the Board of Directors based on a combination of factors including the risk in our portfolio, earnings and current capital position. 

** Restrictions and fees apply. Please visit compeer.com/home for more information