Recently a member asked me if it was worth the time and closing costs to refinance their $200,000 30-year mortgage from 4.875% to 3.875%.

With mortgage rates at 40-year lows, many homeowners are asking themselves similar questions.

How do you know if you’ll truly benefit from a mortgage refinance?

I tell our members a rough rule of thumb is that if you can reduce your mortgage rate by 1.00% or more, you’ll most likely come out ahead with a refinance.

Even better, if you can reduce your rate and your term, you’ll save significantly on interest payments.

For example, if you take a 30-year mortgage at 4.875% and convert it to a 15-year mortgage at 3.25% on a $200,000 home loan, you’ll save $129,428 in total interest over the life of the loan. Wow!

As a not-for-profit financial cooperative, Goldenwest Credit Union exists to enrich our members…not stockholders. Our low closing costs, including 0.50% origination on most mortgages, will help you save money in the refinance process.

Is it the right time to refinance your mortgage? It doesn’t hurt to ask. At Goldenwest, you can trust our 20 experienced mortgage originators to answer questions about your individual situation and help you get the right mortgage.

If you have a suggestion on how we can better serve our members at Goldenwest, send me an email at president@gwcu.org. Also, I invite you to follow me on Twitter @GoldenwestCUCEO.

Thanks for making my job so enjoyable,

Kerry H. Wahlen
President/CEO