Are you interested in a lower interest rate on your existing Rural 1st loan? We offer two options to help you take advantage of lower interest rates. This article will help you decide which of the two may be a better fit for you.
Refinance
When a mortgage is refinanced, the existing loan is paid off and replaced with a new one. There are many reasons why homeowners refinance. It’s true that getting a mortgage with a lower interest rate is one of the best – and most common – reasons homeowners refinance. You may also consider refinancing to shorten the term of your mortgage and pay significantly less in interest payments. Fewer interest payments mean the principal of the loan will be paid off quicker and the debt eliminated faster.
If you are a full-time farmer, Rural 1st offers you the option of a cash-out refinance. This allows qualified borrowers to access the equity they have in the home and essentially “reset the clock” on their mortgage. Homeowners often access the equity in their homes to cover major expenses, finance remodel projects on their own home, or pay down debt. Before you refinance, take a careful look at your financial situation and ask yourself how long you plan to continue living in the house and how much money you’ll save by refinancing.
Rate Conversion
A rate conversion is a way to lower your interest rate without refinancing. Our Conversion Program allows you to convert to a lower rate if the market drops or even shorten your loan term*. The process is simple and can be done for a small fee, once every 12 months*.
When used carefully, refinances and rate conversions can be valuable tools to help you save on your monthly payments or pay off your loan quicker. Use our refi calculator to estimate your savings, or contact a Rural 1st loan officer to discuss your options and get started today.
Already a Rural 1st customer and interested in a rate conversion? Contact our Customer Care team by calling 1-855-800-7976 or emailing [email protected].
*Provided that eligibility requirements are met. Conversion has a one-time fee of $750. Terms and Conditions may apply. The fee is subject to change without notice.
