Benefits to Refinancing Your Mortgage with Eastern Bank
There are many reasons you may want to refinance your mortgage after you’ve purchased your home. They include:
- Lower your rate: If interest rates have dropped since you purchased your home, a lower rate may reduce your monthly payments. Call us at 800-EASTERN to speak with a Mortgage Specialist and obtain an honest, accurate quote with integrity.
- Refinance to a fixed rate: If you have an adjustable-rate mortgage (ARM), you could refinance with a fixed-rate mortgage which will lock in your new rate for the life of the loan.
- Shorten your loan term: If interest rates have dropped and/or your income has increased since you took out your mortgage, you may be able to refinance to a shorter term: 15 years instead of 30 years, for example. Shorter terms generally have lower rates, so your new monthly payment may not be much higher than the original monthly payment on the longer-term loan.
- Borrow additional cash: If you’ve built some equity in your property and would like to use it to make improvements on your home or for something else, you may be able to increase your loan amount when you refinance and withdraw some cash. When a new mortgage loan is greater than the existing mortgage, the borrower receives the difference in cash; this transaction is referred to as a cash-out refinance.
Mortgage Refinance Calculator
Compare a new mortgage rate to your current mortgage rate and see how changes to the new loan will impact monthly payments.
Mortgage Payment Calculator
Change variables like the mortgage rate and term to see how they impact the monthly payment.
Mortgage Points Analysis Calculator
Compare a lower-points mortgage option with a higher-points mortgage option and see the difference in your initial payments and your monthly payments, as well as which provides the most cost savings at any point of the loan term.
Explore your Eastern Bank Refinance Options
| Benefits | Conventional Mortgages | Portfolio Mortgages | Government Mortgages |
|---|---|---|---|
|
Best if you... |
Have stable income and credit history |
Want your loan serviced locally by Eastern Bank |
Have a government loan and would like to lower the rate |
|
Features |
Often have the lowest rates and fewest restrictions |
Larger fixed-rate loans and competitive adjustable-rate mortgages (ARMs) |
Often offers a simplified process for borrowers who already have a government loan |
|
Offerings |
Fixed-rate mortgage Adjustable-rate mortgage (ARM) |
Jumbo mortgage Conforming mortgages Fixed-rate mortgage Adjustable-rate mortgage (ARM) Interest-only mortgage Opportunity Mortgage |
Veterans Administration (VA) loans USDA Rural Housing Programs Federal Housing Administration (FHA) mortgages |
Things to consider when refinancing your mortgage
What is the maximum amount you can borrow?
The maximum refinance loan amount varies from program to program. Check with your loan officer to determine your specific eligibility.
Is it better to refinance or open a home equity line of credit (HELOC)?
You may want to consider refinancing because:
- Interest rates are often lower on mortgages than they are on home equity loans
- Mortgages can have terms up to 30 years, so payments can be lower than with a shorter-term equity line or loan
- Taxes and insurance are included in your mortgage payment, which makes it easier to budget
- You prefer to have only one housing payment
In some cases, the Eastern Bank FlexEquity® home equity line of credit may be a better choice than refinancing. This option would be worth considering if:
- You only need a small amount and/or don’t want to pay a lot of closing costs
- You don’t know exactly how much you need and don’t want to borrow more than you need
- You want the flexibility of being able to use the line again as you pay down your balance
- You have a good rate on your mortgage and don’t want to lose it
The refinancing process
- Inquire: Call us at 1-800-EASTERN, start an online inquiry or visit an Eastern Bank Loan Officer.
- Apply: Your Eastern Bank Loan Officer will help you complete an application. You will receive an application and disclosure package, which you will need to sign. If you cannot sign your application electronically, a paper disclosure package will be mailed to you. At this point, you will also need to pay any applicable fees and submit any required documents like paystubs and bank statements.
- Get an initial approval: Once the underwriter reviews your file, more documents may be required if there are questions about your income, assets or credit.
- Get final approval and close: Closing on a refinance is generally a bit easier than purchasing a home. There are no real estate brokers involved, and usually no inspections outside of the appraisal are required. If you have enough equity in your property, you can finance any closing costs to minimize out-of-pocket expenses.
Since mortgage payments are made in arrears, your first payment typically won’t be due until the first of the month after the month after your closing. For example, if you close in April, your first payment may not be due until June 1.
This is not a commitment to lend. Subject to program guidelines and credit approval. Other terms and conditions may apply.