Refinancing your mortgage can be a game-changer, offering opportunities to lower your interest rate, reduce monthly payments and tap into your home's equity*. However, the process can seem complex and overwhelming. In this blog, we’ll break down some key considerations to help you decide if it's the right move for you.

Whether you're looking to save money, consolidate debt or fund home improvements, these expert insights and practical tips will guide you through each step of the refinancing journey. At Busey, we understand the importance of making informed decisions when it comes to refinancing your mortgage, as it can be the key to unlocking significant savings and achieving your long-term financial goals. Here are some tips to help you get started:

• Understand Your Goals. Before diving into the refinancing process, take some time to evaluate your financial goals and objectives. Are you looking to lower your monthly payments, reduce your interest rate, shorten your loan term or tap into your home's equity? Understanding your goals will help you determine the right refinancing strategy for your needs.
• Assess Your Current Mortgage. Review the terms and conditions of your existing mortgage to understand where you stand. Take note of your current interest rate, remaining loan balance, monthly payment and loan term. Assessing your current mortgage will help you determine whether refinancing is a viable option and what potential benefits you stand to gain.
• Check Your Credit Score. Your credit score plays a significant role in determining your eligibility for refinancing and the interest rate you qualify for. Obtain a free copy of your credit report from annualcreditreport.com and review it for any errors or discrepancies. If you would like to improve your credit score before applying for refinancing, contact a financial advisor.
• Research Refinancing Options. There are several refinancing options available, each with its own set of benefits and considerations. Explore options such as rate-and-term refinancing, cash-out refinancing and streamline refinancing to determine which one aligns best with your goals and financial situation. Consider factors such as interest rates, closing costs and eligibility criteria when comparing refinancing options.
• Calculate Your Savings. Use online mortgage calculators to estimate your potential savings from refinancing. Compare your current mortgage with various refinancing scenarios to determine how much you could save on your monthly payments and over the life of the loan. Factor in closing costs and other fees to ensure that refinancing makes sense for you.
• Gather Necessary Documents. Prepare to submit several documents during the refinancing process, similar to when you applied for your original mortgage. Gather documents such as pay stubs, W-2 forms, tax returns, bank statements and proof of assets to expedite the application process. Having these documents readily available will streamline the refinancing process and prevent delays.
• Shop Around for Lenders. Don't settle for the first lender you come across when refinancing your mortgage. Take the time to shop around and compare offers from multiple lenders to ensure you're getting the best deal possible. Consider factors such as interest rates, closing costs, loan terms and customer service when evaluating potential lenders.
• Lock in Your Interest Rate. Once you've found a lender and refinancing option that meets your needs, consider locking in your interest rate to protect against potential rate fluctuations. Interest rates can change daily based on market conditions, so locking in your rate ensures that you'll receive the agreed-upon rate when your loan closes.
• Review and Sign Closing Documents. Similar to when you purchased your home, you'll need to review and sign closing documents when refinancing your mortgage. Take the time to carefully review the terms and conditions of your new loan, including interest rate, loan term and closing costs. Address any questions or concerns with your lender before signing the documents.
• Monitor Your Finances. After refinancing your mortgage, continue to monitor your finances and assess your progress toward your financial goals. Take advantage of any opportunities to make extra payments or accelerate your repayment schedule to pay off your mortgage sooner and save on interest costs over time.

Busey Bank is committed to helping homeowners make smart financial decisions and achieve their long-term goals. Our team of experienced mortgage professionals is here to guide you through the refinancing process and provide personalized assistance tailored to your needs. To learn more about refinancing options and take the first step toward maximizing your investment in homeownership, visit busey.com/mortgage.

*Subject to credit and property approval. Restrictions and limitations apply. The amount you save on a refinanced mortgage may vary by loan. If a refinanced mortgage has a longer term than remains on your current loan, you will incur additional interest charges for the extended term. Servicemembers and their dependents, in some cases, a refinance may impact your eligibility for benefits under the Servicemembers Civil Relief Act (SCRA) or applicable state law. Please consult with your legal advisor prior to seeking a refinance of your existing mortgage loan.