Unlock Your Home Equity Without Sacrificing Your Low Mortgage Rate
Understanding Blended Rates!
Are you sitting on valuable home equity but hesitant to touch your low-interest first mortgage? Or maybe you're juggling high-interest debt and dreaming of one simplified payment? You're not alone. Many homeowners face this dilemma.
That's where blended rates come in. This refinancing strategy is one way to reduce overall interest costs and simplify your finances, all while leveraging your home's value. However, before committing to a blended rate, be sure you know what it means.
What Exactly is a Blended Rate?
Imagine combining your current low-rate mortgage with a new loan (for cash-out or debt consolidation) into one powerful new mortgage. A blended rate is the single, weighted average rate for that combined amount.
How it Works:
- Your Existing Low-Rate Mortgage: The foundation.
- Your New Financial Need: Whether it's home improvements, debt consolidation, or another goal.
- The Smart Combination: You merge your old mortgage and your new need into a single mortgage loan.
- Your New Blended Rate: A single rate for the entire balance.
The Power of a Blended Rate: Why It Matters to You
A blended rate could lead to:
- Lower Monthly Payments: Potentially reduce your total outgoing payments.
- Significant Interest Savings: Especially when consolidating high-interest debt.
- One Simple Payment: Say goodbye to juggling multiple bills.
The Blended Rate is generally higher than the rate on a $1 million loan, but the overall savings can still be substantial!
Is a Blended Rate Right for You?
If you are considering a blended rate, you may want to look at how it compares to a current first mortgage rate. It may be better to consider an actual refinance with cash-out to keep your rate as low as possible while consolidating higher priced date.
We get it – mortgages can feel complicated. That's why we're here to make it clear. Our expert Mortgage Advisors will help you understand if a blended rate aligns with your financial goals. We'll walk you through the numbers, answer every question, and ensure you make a confident, informed decision. Your financial well-being is our priority.
Ready to explore your options?
Our team at NGFCU is here to guide you every step of the way. Give us a call at 888.NGFCU.RE (643.2873), email us at homeloan@ngfcu.us, or fill out the consultation form below to get personalized support.
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NMLS #774623. Loan approval, rates, and terms are based on creditworthiness.
Speaking to an NGFCU Mortgage Advisor will help provide accurate rates.