Refinance Your Home in Central PA and MD
Ready to save some money? Maybe you need to lower your monthly payments or consolidate debt. It might be time to refinance your home for any number of reasons.
Refinancing entails replacing your existing mortgage with a new loan. The process works much like obtaining a mortgage for a home purchase. You start by shopping around at various lenders to compare interest rates. Once you've found a rate you're happy with, you complete an application and go through all the approval steps. You may also need to pay closing costs when refinancing.
Sample payment amount below based on a $180,000 loan amount, with an 80% loan to value.
Scroll to the left to view the rest of the table.
The Benefits of a Home Refinance in PA or MD
You may wish to consider refinancing your mortgage for the following reasons.
Lower Interest Rates
Perhaps you purchased your home at a time when interest rates were relatively high or when your credit score was low. If interest rates have dropped and your credit has improved since you bought the property, refinancing could significantly lower your monthly mortgage payment. In some cases, you could reduce your payments by several hundred dollars per month and save thousands of dollars in interest over the loan term.
Cash Out
If you've owned your home for several years, you've probably amassed a substantial amount of equity, which is the current market value of the property less any liens attached to it. You can refinance a mortgage to tap into this equity. You'll get access to cash you can use to pay bills or debts, finance a large purchase, help fund a child's education or virtually any other purpose.
Change Mortgage Type
Did you take out an adjustable-rate mortgage (ARM) when you purchased your home? An ARM features a fixed interest rate for a specified time frame. At the end of the period, your rate could change — if it increases, your monthly mortgage payment will also likely go up. Refinancing from an ARM to a fixed-rate mortgage can help you avoid these market fluctuations — and a significant payment increase.
New Loan Terms
Maybe you initially took out a 30-year mortgage to keep your monthly payments as low as possible. If your financial situation has improved and you can afford a larger payment, you can refinance to a shorter term, such as 15 or 20 years. In addition to paying your loan off sooner, you'll likely get a lower interest rate and save thousands of dollars over time.
Remove PMI
If you made a down payment of less than 20% of the purchase price when you bought the property, you're likely carrying private mortgage insurance. PMI protects the lender's interests if you stop making payments. If your equity level has reached at least 20%, you may be able to refinance and eliminate the extra PMI cost.
Why Choose Us for Your Mortgage Refinance?
At Orrstown Bank, we offer a high-touch, transparent lending experience that is free of hidden fees or prohibitive loan structure issues. Our local decision-making process helps avoid late-breaking closing table delays or situations where you receive incomplete information or unreliable advice. Although we're a smaller lending institution, we have the large-bank capabilities that deliver the best results.
Check Out Our Current Refinance Rates in Central PA and Maryland
Review the rates below, then call your Orrstown loan officer to see what's right for you. Contact Orrstown Bank today to get your mortgage refinance process started.
The current rates listed above are based on the criteria you selected and the following assumptions.
These parameters are subject to change without notice.
Property is one unit
Closing costs are paid out of pocket
No Seller Assistance
Debt-to-Income is below 45%
You do not have a second mortgage
Rates are valid for 30 day lock periods
Loan-to-Value ratio is 80% or less (down payment is at least 20%)
Credit Score Assumptions:
Excellent : 770+
Good : 720 - 769
Fair : 680 - 719
Poor : 600 - 679
General Disclosures:
Interest rates and APRs are based on current market rates, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value ratio, credit score and other variables. The actual fees, costs and monthly payment on your specific loan transaction may vary and may include additional fees and costs. Some restrictions may apply. Call us at 1.888.677.7869 or in Shippensburg area at 717.530.3530 for additional information.
This is not a credit decision or a commitment to lend and credit is subject to approval. Depending on loan guidelines, mortgage insurance may be required. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment.
APR (annual percentage rate) reflects the effective cost of your loan on a yearly basis, taking into account such items as interest, most closing costs, discount points (also referred to as "points") and loan-origination fees. Your monthly payment is not based on APR, but instead on the interest rate stated on your promissory note.
FHA loans require both an up-front and an annual mortgage insurance premium. The premium varies based on the loan characteristics, your credit score, whether you've received loan counseling, and other factors. For illustrative purposes on FHA loans, our detail results do not include a mortgage insurance payment added to the monthly principal and interest payment. Contact a Mortgage Originator for further details.
Other products and terms are available upon request.
