Refinancing Your Mortgage

Homeowners refinance their mortgages for a number of reasons. Some may want a lower interest rate and/or monthly payment, while others may want to take advantage of their home’s equity to free up cash for home improvement projects or debt consolidation. Whatever your reason, GNCU’s home lending subsidiary, Greater Nevada Mortgage (GNM), can help you turn your “why” into a “how.”

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Happy couple on the ground with moving boxes around

GNM is here to help you meet your homeownership goals, including exploring down payment assistance programs! They also prioritize speed for clients, with an average turnaround of only 21 days from application completion to ready-to-close for purchase loans.¹

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Refinancing a mortgage is the act of paying off your existing home loan with a new home loan. Homeowners generally refinance for several reasons:

Lower Your Interest Rate

Rates change over time, and refinancing may enable you to lower your interest rate and save on the total amount of interest you’ll pay over the life of the loan.

Lower Monthly Payments

If you need to lower your current monthly payment amount, then refinancing to extend out your term length may be a viable option.

Debt Consolidation

A refinance in which you take out a bit more than what your existing mortgage amount is may enable you to tap into your home’s equity to pay off other high-interest debts.

Types of Home Loan Refinancing

There are more ways than one to go about refinancing your existing mortgage. Let’s take a closer look at the two main options for credit union mortgage refinancing.

Rate and Term Refinance

With this type of refinance loan, the borrower takes out a new home loan at the existing mortgage payoff amount just to change to a new interest rate and/or loan term length.

Cash Out Refinance

With a cash out refinance loan, the borrower takes out a new, larger home loan than the existing mortgage payoff amount to receive the difference between the two loans in cash for other uses.

Everyone Deserves a Home

According to the National Alliance to End Homelessness, over 7,600 Nevadans experience homelessness on any given night. GNM’s Keys to Greater program donates a portion of the revenue from every new mortgage or refinance to community nonprofit organizations that address homelessness, and since launching in 2021, over $200,000 has been donated!

Keys to Greater

How much does refinancing a mortgage cost?

The process is similar to that of buying a home (minus the seller side of that equation). Because it involves creating a new mortgage, there are closing costs and origination fees associated with the transaction. Want to know if you can afford a rate and term refinance? Ask yourself whether you could recoup your closing costs in monthly savings in less than four years. If you will be in the house for longer than this period, then refinancing might be a smart move for you. You can run test scenarios through our mortgage refinance calculator to get a better sense of what your costs and savings might be.

When are you able to/should you refinance your mortgage?

In general, you should make at least three or four monthly payments on your initial mortgage before applying to refinance. It can also hinge on the type of loan you have, the included terms and conditions and your lender’s prescribed waiting period.

Does refinancing a mortgage affect your credit score?

Yes. A hard inquiry will be required to pull your credit report and will impact your credit score. Also, because you’re taking on new debt, your credit score will be affected. Our advice: do not skip payments on your existing mortgage while you are refinancing. Make your payments on time, even when you think you will be closing soon. This protects your credit score.

How long does mortgage refinancing take?

The length of time it takes to go from application to closing on a refinancing loan will vary depending on seasonal and other factors, but generally it takes between four to six weeks to complete.

How are mortgage interest rates determined?

Interest rates are based on a variety of factors, including economic conditions as well as the Prime Interest Rate which is set by the Federal Reserve. They change constantly (both up and down), and that could be a big factor when choosing between a fixed rate or adjustable rate mortgage to refinance to.

Ready to Refinance?

When you’re ready to begin the refinancing process, the experts at Greater Nevada Mortgage are ready to help. You can begin by applying online, or you can reach out to a local GNM Mortgage Consultant to have your questions answered.

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¹Annual Percentage Rate (APR) is based on a loan amount of $450,000 at 80% Loan-to-Value with a credit score of 700 for conforming loans. Rates and fees are subject to change without notice. Membership with Greater Nevada Credit Union is required prior to loan funding, which is open to anyone living or working in any of Nevada’s 17 counties and members of their immediate family. Average purchase loan turnaround time is based on application completion to final approval, with all required conditions and guidelines being met awaiting the Close of Escrow date, for January 2025. This is not a guaranteed timeframe for all loan applications. Each loan transaction is different, and individual turnaround times will vary.

Greater Nevada Mortgage | NMLS ID: 279738 | CA ID: 41DBO-61467 | Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act

Reasons to Refinance with Greater Nevada Credit Union

What’s Mortgage Refinancing?