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DCCU Routing # 251483311


Refinance Options

Whether you are looking to lower your monthly payment, make renovations, or use your home’s equity to finance a major purchase, refinancing your home is a great option.

It’s good to check to see if your current mortgage still makes sense or if it’s time to refinance. Whether you are looking to lower your monthly payment, change your term, or cash out some of your home’s equity for home improvement projects or debt consolidation – a DCCU refinance can help you reach your goals faster. 

Which Mortgage Refinance Option is Right for You?

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Rate-and-Term Mortgage Refinance

With a rate-and-term refinance, you can replace your current mortgage with a new one that has more beneficial terms.

  • Get a lower interest rate, go from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage or even get a shorter term for your loan
  • Generally have more favorable interest rates and allow for higher loan-to-values (LTVs) than cash out refinances
  • Can include the payoff of a second mortgage if the second mortgage was used to purchase the home. A rate-and-term refinance does not allow for additional cash out — the loan amount is limited to the payoff of the current mortgage (and second mortgage used to purchase the home, if applicable), plus closing costs.

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Cash Out Mortgage Refinance

A cash out refinance also replaces your current mortgage with a new one, but it’s coupled with a higher loan amount that allows for cash to be pulled out from the equity in the home.

  • Use the additional funds for home renovations, debt consolidation, college tuition, or other needs.
  • Interest rates for cash-out refinances are generally higher and have more qualifying requirements than rate-and-term refinances. Cash out refinances also have lower loan-to-values (LTVs) than rate-and-term refinances.
  • With a cash out refinance, you can keep one monthly mortgage payment instead of adding a home equity loan payment. 

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Consolidation Mortgage Refinance

A debt consolidation mortgage involves refinancing your mortgage in order to pay off other debts. You will exchange your current mortgage loan for a new one to free up more money to pay off other debt.

  • Get cash to pay off high-interest debt, such as credit cards.
  • Make one monthly payment instead of several.
  • Consolidate your first and second mortgage by refinancing into one monthly payment.