Mortgage Refinance Rates​

THREE STEPS TO APPLY FOR MORTGAGE REFINANCING IN UTAH

FAQs ABOUT MORTGAGE REFINANCING RATES

• What factors go into determining the mortgage loan rate you are offered

  Many factors go into determining the interest rate you are offered on your mortgage, including the type of house you are buying, the state of the property market in your area, the amount of money you want to borrow, and how much money you have available for a down payment.
  
  Lenders will also look closely at your creditworthiness as a borrower. They will pay particular attention to your credit score,  your income, whether you have a steady job, and your existing debts. They will also look at  how much debt you will be taking on relative to your income (your debt-to-income ratio). The less likely lenders think you are to default on a loan, the lower the interest rate you will be offered.

• How does a cash-out refinance work?

  A cash-out refinance lets you replace your existing mortgage with a larger loan and take the difference in cash. You can use the money for things like home improvements, debt consolidation, or to cover major expenses. However, because you’re borrowing more than you owe, a cash-out refinancing increases your mortgage balance and may raise your monthly payment.

• What is the difference between a loan’s interest rate and its APR?

  A loan’s interest rate is the basic cost of borrowing your principal, given as a percentage of the total loan amount. A loan’s APR (annual percentage rate) includes your interest rate plus other costs, such as fees or points, providing a more accurate estimate of what you’ll actually pay each year.

• Why are interest rates higher on longer-term loans?

  Interest rates are higher on longer-term loans because lenders take on more risk over time. The longer the loan lasts, the greater the chance that market rates, inflation, or your financial situation could change. Higher rates help compensate lenders for that added uncertainty.

• What is the advantage of a fixed-rate loan?

  A fixed-rate mortgage locks in your rate for the duration of your term. Knowing exactly how much you will owe on your mortgage every month for 15 years or more provides long-term predictability in your budget, allowing you to plan ahead and allocate money for other priorities. 
  
  A fixed-rate loan will also save you money if mortgage rates rise over the long term, as well as making your home a valuable hedge against inflation. Most importantly, you will continue to make the same mortgage payment even as the value of your home increases.

• Why do credit unions offer lower interest rates than the big banks?

  Credit unions are able to offer lower interest rates on mortgages than the big banks because they are not-for-profit financial co-operatives owned by and run on behalf of their members. Unlike banks, which must prioritize profits for outside shareholders, credit unions are able to return any profits they make directly to their members in the form of higher dividends on deposits, fewer fees, and, of course, lower rates on mortgages or other types of loans.

• Do I need to join Wasatch Peaks Credit Union to refinance my home?

  Yes. While we are happy to refinance loans from other lenders, you will need to become a Wasatch Peaks Credit Union member to apply. You are welcome to join Wasatch Peaks if:

  • You are an immediate family member of an existing member-owner: parent, child, brother, sister, spouse or surviving spouse, grandparent, or grandchild. This includes stepparents, stepchildren, stepsiblings, and adoptive relationships.

  • You live, work, worship, attend school, or regularly conduct business with companies and other legal entities located in Weber, Davis, and Morgan Counties, or within a select underserved community located in Box Elder, Salt Lake, Summit, Utah, Tooele, and Juab Counties.

  • You are a member of Trails Foundation of Northern Utah (TFNU.org), a 501(c)(3) NGO that functions as a planner, promoter, constructor, and protector of a network of public paths, trails, and related open spaces for non-motorized use. Not a member of the Trails Foundation Northern Utah? Wasatch Peaks will enroll you at no additional cost to you.

  • None of these fit, but I still want to join. A Wasatch Peaks Member Service Representative will find the best eligibility option for you.

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