Mortgage Refinancing

Home Loans

When you’re ready to secure better home loan terms, you can refinance your mortgage to lower your monthly payment or interest rate.

Your finances, payment preferences, and the market can change drastically over the years after purchasing a home. Maybe your credit has improved so you can qualify for better terms, or interest rates have dropped across the board, or you want to borrow against the equity in your home to cover various costs. Refinancing your mortgage gives you the flexibility to do any of those, plus more. At Listerhill, our team is here to help you achieve your refinancing goals, whatever they may be. Low fixed interest rates flexible loan terms including a 15 and 30-year loan up to 85% financing with no PMI.

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What is Mortgage Refinancing?

When you refinance your mortgage, you essentially replace your original mortgage and abide by your new home loan terms. The terms that change can depend upon your goals, whether you want to reduce your interest rate, pay your loan off quicker, or go from a fixed rate to an adjustable rate or vice versa.

Refinancing your mortgage gives you the freedom to pay off your home on your terms. Refinancing your mortgage comes with a slew of benefits, so if you’re in the right place to refinance, you can take advantage of some of these benefits:

A lower interest rate - if mortgage rates have fallen or if your credit profile has improved since your original mortgage, you can secure a lower interest rate and pay less in interest over the life of your loan
Reduced monthly payments - lower interest rates reduce your monthly payment so that you can have more flexibility in your budget
Borrowing money - if you choose a cash-out refinance, you can borrow against the equity in your home to use for any purpose, whether you want to consolidate debt or complete home renovations
Shorter loan term - perhaps you want to pay off your home quicker. In that case, you can reduce your loan term from a 30 year to a 15-year mortgage. While doing so will increase your monthly payment, it will allow you to be mortgage-free faster.

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Requirements for Mortgage Refinancing

To qualify for a mortgage refinancing, we will look at your financial background to determine whether you have a manageable level of debt, steady income, good credit history, qualifying homeownership period, and home equity.

Debt to income ratio: We will review your debt to income ratio (DTI) to ensure you don’t have more debt than your income can manage. A recommended DTI, including your mortgage payment, is no more than 43%.

Steady income: Whether you’re self-employed or have a W2 job, we want to ensure that you have a stable work history showcasing your likelihood of being able to afford your home now and in the future. Two years of consistent employment are typically required to qualify for a home loan.

Credit history: Your credit score is a significant indicator of your financial responsibility. We will review your credit history and credit score to determine whether you have the background that showcases your ability to manage mortgage payments.

Homeownership period: In many circumstances, you need to hold the title to your home for a set period; generally, 6 months, to refinance your mortgage.

Home equity: Additionally, you want to have equity in your home before refinancing. This is especially important if you're going to complete a cash-out refinance.

While we look at these five factors to help you qualify for a mortgage, we also realize this is not black and white and will review your full profile and speak with you directly to get you the loan you want and can afford.

Apply for Mortgage Refinancing in 3 Easy Steps

STEP 1

Apply Online

Click the button below to begin your online application.

STEP 2

Get Approved

Agree to your loan amount, your rate, and terms offered.

STEP 3

Break Ground!

Start building your dream home with flexible financing as you need it.

Get Started

Frequently Asked Questions

Help Center

Does it matter who your mortgage is with?

Yes because choosing the right lender for your home loan or refinance can lead to a better transaction overall. This is especially important if you are a first time homebuyer or attempting to qualify under special circumstances.

Why choose Listerhill for my mortgage?

At Listerhill, our focus is on “people helping people.” When you purchase a home, we want to offer you the support you need from application to closing. As a nonprofit cooperative owned and operated by its members, you own an equal “share” in Listerhill and vote in elections for the Board of Directors and Supervisory Committee. That means your voice is always heard, and in turn, our actions reflect your needs and desires. Our mortgage rates, terms, and policies will always reflect your needs in securing the best credit union mortgage loan in Alabama.

Is a credit union better for mortgages?

Securing a mortgage through a credit union is preferable for many seeking to purchase a new home or refinance. Credit unions often offer more competitive mortgage rates in Alabama and are more flexible with their terms and conditions.

When does it make sense to refinance a mortgage?

Refinancing your home loan can be a great option to secure a better loan for your current circumstances and future goals. It makes sense to refinance your mortgage if one of these benefits will be helpful for you: securing a lower interest rate, reducing your mortgage term, switching from an adjustable-rate mortgage to a fixed-rate mortgage or vice versa, or borrowing against the equity in your home.