When you bank with Navy Federal (NFCU), you’re a member, not a customer. Unlike most banks, credit unions do not exist to make a profit. Credit unions spend any money they make to improve services for members and offer more affordable interest rates on mortgages and Navy Federal refinance rates are among the most competitive in the marketplace, too.
Over 3.5 million members trust Navy Federal Credit Union. As the world’s largest credit union, with assets of over 4 billion dollars, Navy Federal Credit Union mortgage rates are very affordable for members. The credit union provides a choice of many different mortgages to suit a variety of needs.
How can you qualify for Navy Federal credit union?
Let’s start by addressing that not everyone can be a member of Navy Federal Credit Union. Navy Federal is a specialized bank that serves most branches of the military. Active duty, retired military personnel, and family members can qualify for membership.
When to consider a refinance?
It’s always important to identify your goals, or understand why refinancing might improve your financial situation, before jumping into the process. Here are a few of the most common reasons a borrower refinances their loan:
If you just started a mortgage. Early in a mortgage term, your payments are primarily going toward interest. As you get further into your loan, refinancing may extend the cost over the life of your loan and bound you to a longer time commitment.
If interest rates are lower than when you financed. Depending on when you secured your initial purchase mortgage, current refinance rates could be significantly lower than your deal.
You may opt to keeping your current terms and lower your monthly payments or keeping your monthly payments and shorten your pay back schedule – either way, you could be saving a significant amount of money. A general rule of thumb is, if you can find a loan for about 2% lower than your current term, you should consider refinancing.
If your home’s value increased. If your live in a hot market, it’s possible your home has increased in value. Refinancing can provide the opportunity to cash in on the equity in your home – either through a cash out refinance, or home equity loan.
If you’re moving soon.
If you’re planning to move, you have the option to refinance with a product that might make your monthly payments lower. This can save you money as you gear up to change paths. This point, in particular, is important for Navy Federal refinances – as we mentioned before, the amount of adjustable rate mortgages makes refinancing before a move easy and cost-effective.
What does Navy Federal Union offer?
To make obtaining a mortgage easier, members receive expert guidance to help them select the right mortgage for their unique situation. Navy Federal Credit Union’s reasonable mortgage rates offer a great value for members. The credit union does not make loans to make a profit. Any money made on loans goes to improve member services, offer lower Navy FCU mortgage rates and make loans to more members.
Like most typical lenders, Navy Federal Union offers fixed rate, adjustable rate, and government-backed refinance options:
- 30-year and 15-year fixed-rate loans
- Federal Housing Administration loans
- Department of Veterans Affairs loans
- Interest-only loans
- Adjustable-rate mortgages with 1/1, 3/1, 5/1, 7/1, 10/1 and 2/2 terms and 3/5 and 5/5 ARMs.
The breadth of adjustable rate mortgages is a testament to a true military-friendly organization. ARM loans are a great refinance choice for homeowners who might be moving or re-stationed soon. The short-term loans allow a borrower to take advantage of low interest rates for the time being. Military families are often on the move, and because the initial costs of refinancing can add up – it doesn’t make sense if there is a potential to relocate in the near future. An adjustable rate mortgage can help rectify this issue.
Fixed rate mortgages available from Navy Federal Credit Union come with either 15-year or 30-year terms and fixed monthly payments. 30-year mortgage rates make payments easier to afford. When you know the amount of your mortgage will not change, creating a budget becomes much easier.
Mortgages may be obtained for properties nationwide. Navy Federal Credit Union services mortgages for the life of the loan. They do not sell member mortgages to other banks or companies. The credit union offers many different programs for veterans and first-time buyers.
Nfcu refinance rates can help you save money on your refinance. They are exceptionally accommodating to active duty military who may be stationed soon. (Photo/Wikipedia)
Navy Federal Credit Union mortgage rates today
While some financial institutions take into consideration non-traditional forms of credit history, like the amount of on-time rent payments, Navy Federal Union takes it a step further. This credit union also looks at utility and phone payments when determining a borrower’s eligibility and rates. This can be incredibly helpful for borrowers to secure the lowest rates, and in turn save money over the long run.
The quotes offered on Navy Federal Union’s website aren’t customized rates by geography, credit history, or other information. To find current and customized rates for your financial situation, you’ll need to call Navy Federal directly.
How does Navy Federal Union refinance rates compare to other banks?
USAA vs. Navy Federal: Comparing these two military-centric financial institutions is a great way to see how your military status can impact your mortgage rates. Both organizations tout the lowest rates for their members, and both lenders do 50 percent or more of their mortgage business through the VA.
One important aspect to consider before refinancing is the closing costs. And head to head, Navy Federal can’t compete with USAA on this front. USAA offers no fee IRRRL and a lower origination fee. (Currently, Navy Federal charges a .50 percent. higher origination fee.)
Navy Federal Credit Union vs. Nationstar: If you enjoy a personal relationship with your lender, Navy Federal would make more sense as a lender than Nationstar. Currently, Nationstar doesn’t have branch locations, which can make it more difficult to experience a strong customer/lender relationship. When it comes to product comparisons each institution tries to show it’s individual flare. Nationstar focuses on consumer literature – they offer lots of homeowner tools and educational information. Navy Federal takes a monetary incentivization stance – they offer a $1,000 mortgage rate match program.
Navy Federal Credit Union vs. Wells Fargo: Even if you are eligible for a specialty credit union like Navy Federal it’s worth comparing how a national bank stacks up. If you are currently, a Wells Fargo customers you may be eligible for a streamlined refinance option which means no closing costs or application and appraisal fees for the customers. This can help offset the costs of refinancing, which could make up the difference of a lower overall interest rate in the long run. Navy Federal doesn’t currently offer a streamline product.
Additional considerations to determine if a Navy Federal refinance is for you
Members can refinance their mortgage with Navy Federal Credit Union for up to 97% of the home’s loan to value ratio. Most conventional mortgages do not require the borrowers to purchase private mortgage insurance. No pre-payment penalty charges apply if you pay your mortgage off early or decide to refinance again.
FHA loans offer another affordable mortgage option. Navy Federal Credit Union offers FHA mortgages as a refinancing option as well if your first mortgage was with a different lender. FHA mortgages require a low down payment, making them the ideal option for a variety of borrowers. The loan amounts available depend on the location of the property. FHA loans often allow more flexible loan qualification requirements.
Do your homework
You’ll have to sort through an abundance of information before settling on the best refinance product for you. Use a mortgage calculator to add up all costs of a refinance: closing costs, new interest rates and monthly payments. You might be surprised to see that even a bank with higher closing costs can save the most money over the course of your loan.
Also calculate your breakeven point. This is especially important if you think you’ll be moving or stationed soon. The breakeven point is the amount of months it will take you to pay off the cost of refinancing – if you move before you’ve recouped the costs of your refinance, you’ve made an unwise financial decision.
All in all, Navy Federal offers great affordable mortgages with many special programs designed to benefit military families. Navy Fed refinance rates offer great terms to make your mortgage more affordable. Home equity loans or a line of credit may help pay for bills or other expenses. You may even be able to deduct the interest you pay on your taxes. Talk to the credit union about finding the best mortgage option to meet your needs.