Are you interested in refinancing the mortgage on your home in Reading, PA? Bellco Federal Credit Union has the tools and expertise to help you make the right decisions.
Bellco FCU is a member-owned, not-for-profit federal credit union. Since 1938, when we were called the Bell Telephone Credit Union, we have provided unique financial products and services to individuals and small businesses in Berks County.
Whether you are looking for home equity loans, fixed rate mortgages, auto loans, credit cards, a fee-free checking account, or an excellent savings program, we are available to help at every important stage of your life.
What Does Refinancing Mean?
Refinancing is when a borrower takes out a new mortgage to pay off his or her original mortgage. It is typically done to lower your monthly payment, lower your interest rate, or take cash out of your home equity for large purchases, such as to buy a car or pay off credit card debt. If you have a good credit history, refinancing can also be a good way to convert an adjustable-rate mortgage to a fixed-rate mortgage.
A lower interest rate can have a big effect on your monthly payments, potentially saving you hundreds of dollars a year. Each time you refinance your mortgage, however, you will add more principal to the end of the loan and extend its term. For this reason, it’s important to decide if refinancing makes financial sense for you and your family.
In exchange for a reduced interest rate, you will pay mortgage points, also known as discount points, to the lender at closing. One point is equal to 1% of the loan amount (or $1,000 for every $100,000 you borrow). Before you decide to go forward, do the math and find your break-even point to see when you will start saving money.
Take your total expected savings per month and divide it into the total closing costs (points and other fees). If closing costs are $6,000, for example, and you plan to save $200 a month, it will take 30 months before you recoup the closing costs and start saving money.
Bellco FCU’s locally-knowledgeable loan advisors will be happy to evaluate your credit worthiness based on your income, assets, debts and past credit use. We can help you refinance your mortgage and determine how much you can afford to borrow.
How to Get Started
Membership in Bellco FCU is open to people who live, work, worship, or attend school in Berks County, PA. Simply open a Member Savings account with as little as $5, and set up your membership in a few simple steps.
Once you are a member, your immediate family members will be eligible to join too and take advantage of competitive rates for mortgages, personal loans, credit cards, and the many other services we offer.
If you are contemplating mortgage refinancing in Reading, PA, experience the Bellco Federal Credit Union difference!