How to Refinance Your Mortgage

Are you looking to make home improvements or repairs, but can’t afford an additional monthly bill?  Maybe pay for college or buy a new car? Or perhaps you need to use the equity to buy another property. There are many reasons to refinance your home or get a second mortgage.

Here are some steps you should take if you are thinking about refinancing.

Run the Numbers – Before you refinance, it is important to understand what the savings and costs are for you.  Use CCU’s financial calculators to help you with your decision.

Gather Important Information – There are a lot of documents involved when you apply for a mortgage loan, so it’s a good idea to make sure you have everything you need ahead of time.  Gather your bank statements, pay stubs, tax returns, and brokerage statements. See our application checklist for a list of the types of documents you will need.

Know Your Credit Score – Better credit equals better rates. It’s a good idea to review your credit score each year to get a sense of where you stand and make sure your information is correct. We can help you review your credit report for errors.

Consider the Equity in Your Home – Generally, it’s best to have 20% equity in your when refinancing in order to avoid the cost of Private Mortgage Insurance (PMI).  To determine approximately how much equity you have, compare the current market value of your home to the balance on your existing mortgage. Remember that resources like Zillow have a margin of error so your actual market value might be different from what is shown online.

Apply for Loan and Lock Rate – Once you’ve compared your options, you’ll need to apply for your loan and lock in your rate. This process will be similar to what you experienced when you previously applied for your current mortgage. We can guide you through the process from start to finish and recommend the appropriate time to lock your rate to ensure you get the best deal.

Approval and Closing – If your new mortgage is approved, a closing date will be set after the loan is processed.  At closing, you’ll pay any closing costs and sign the documents required to finalize the loan.

Whatever your reason for refinancing your current mortgage or getting a second mortgage may be, Community Credit Union can help! For additional information, please call the CCU Mortgage Center at 978-968-2200 to speak to one of our professional mortgage lending representatives or email us at