If you're wondering if refinancing is right for you, take a look at our Frequently Asked Questions about Refinancing.

Is Refinancing right for me?

I hear about equity often. What is it?

What can I use my equity for?

Can I use my equity to pay off debts?

What are some advantages of using my equity?

What should I consider before trading in an adjustable rate mortgage (ARM) for a fixed rate mortgage?

What are some pros and cons concerning adjustable rate mortgages (ARMs)?

Which loan is right for me?

Is Refinancing right for me?

I hear about equity often. What is it? Return to Top

Equity is the difference between the current value of your home and your existing mortgage balance. For example, if your home is valued at $300,000 and the mortgage balance is $200,000, your equity is $100,000.

What can I use my equity for? Return to Top

At SFCU, you can cash out on your equity (up to 90% LTV) to purchase a car, pay for college tuition, take a vacation, start a business, or any number of other expenses.

Can I use my equity to pay off debts? Return to Top

You can use the equity in your home (up to 90% LTV) to pay off debts like credit cards, student loans, car loans, even your taxes! You'll save time and money. (Consult your tax advisor regarding tax deductibility of interest.)

What are some advantages of using my equity? Return to Top

Whether it's to cash out, consolidate your debts, or anything else, the equity in your home is a resource waiting to be tapped. And borrowing against your equity provides you with two key benefits:

• A lower rate than what you'd pay on a credit card or personal loan.
• Unlike interest paid on credit cards, car loans and personal loans, the interest you pay on an equity loan is usually tax deductible. (Please consult your tax advisor regarding tax deductibility of interest).

What should I consider before trading in an adjustable rate mortgage (ARM) for a fixed rate mortgage? Return to Top

Before you submit an application, you may want to ask yourself some key questions:

• How much longer will I stay in my home? If you plan to stay in your home for only two years, it may not be worth your while to convert.
• What will it cost for me to convert? Remember, converting means getting a new mortgage, which means paying up-front costs like points and fees. You'll need to weigh these costs against the interest saved by converting.

What are some pros and cons concerning adjustable rate mortgages (ARMs)? Return to Top

ARMs typically feature a lower initial rate, but they come with the potential to increase over time. An ARM could be less expensive if rates remain the same or decrease, but if rates increase, you could face higher payments.
Before choosing an ARM product, you should ask yourself the following questions:

• If rates go up, is my income likely to rise enough to cover higher mortgage payments?
• What expenditures lie in the near future? Will I be taking on additional debts such as a car or educational loan?
• How long do I plan to own my home? If you plan to sell soon, rising interest rates may not affect your financial situation the way they would if you planned to own your home for an indefinite period of time.

Which loan is right for me? Return to Top

With a sea of loan programs before you, we know the decision can be overwhelming. SFCU has a wide variety of products as well as the in-house expertise to design the right loan program for your specific needs. Whether it's a fixed, adjustable, low-down payment program or anything in between, you can rest assured we have the right loan for you.