Home Refinancing FAQs

When you refinance, you’re replacing your current mortgage with a new one that typically will offer different rates and terms that are more beneficial to you.

Refinancing your home can offer a number of advantages:

• Paying off your home sooner by reducing your mortgage term.
• Building equity faster with a shorter mortgage term and different monthly payments.
• Lowering your monthly payments by changing your mortgage rate and term.

Refinancing can also allow you to take cash out for home improvements, college, debt consolidation and more.

With a cash-out refinance, you use your home equity to replace your existing home loan with a new one for more than you owe on your house. You then receive the difference as a cash payout.

• You decide not to move instead of buying a new home and want to save money over time.
• You have an adjustable-rate mortgage that could cost more due to rising interest rates.
• Your home’s value has increased, allowing you to tap into higher home equity by refinancing.
• You’ve been in your home a short time and want to build more equity via refinancing.
• You want to lower your rate or shorter your term.

No, at UW Credit Union there are no prepayment penalties for paying extra toward your loan principal or paying off your loan early.

Yes, all mortgage and refinance applications require a credit report. If your credit is frozen, we ask that you unfreeze your credit before submitting your application for faster processing.

Yes! UW Credit Union employees live and work nearby, with most of our mortgage and refinance team based in Madison and Milwaukee.

You do not have to be a UWCU member to apply for a loan with us. We ask you to join and become a member before your loan is finalized – all it takes to join is opening a savings account with $5!

The best way to apply for a new home loan, refinance or preapproval is to submit an application online. There is no cost or obligation to apply. After you apply, a mortgage loan officer will be in touch to discuss your application and next steps.

No problem! You can change your loan type at any time prior to closing. Keep in mind that different loan programs may have different requirements, so it’s best to change your loan type as early in the process as possible to avoid delays. Be sure to stay in contact with your mortgage team as the process continues.

The process to complete a home loan generally takes at least a few weeks as your application is processed, underwriting occurs, paperwork is signed and your loan closing is scheduled. Throughout the process, you will receive updates from your mortgage team, as well as automatic email notifications, with updates and timing. And remember that you may also contact your loan officer at any time with questions or concerns.

It's understandable that you want to lock in a low rate as quickly as possible. However, rates are not locked at the time you submit your application. First, it’s important for us to review your information and discuss the loan with you to make sure we proceed with the best option for your needs. After our initial review and conversation, you will have the opportunity to lock your rate.

UW Credit Union will fund your new loan and pay off your old loan. This happens simultaneously, and your old loan will show that it has been paid off at the same time that your new loan is funded. If you had escrow funds in your old loan, those will be refunded to you by the financial institution that serviced your old loan.

Rapid Home Refinance has a processing fee due at closing that varies by property location: Wisconsin $149, Illinois $495, Minnesota $795. Other closing costs are waived, except for the appraisal cost if required. Appraisal costs range from $400 to $800 depending on the loan amount. A full appraisal of your property is typically not required.

All rapid refinance loans have fixed rates.

UW Credit Union services all our home loans and refinances, and rapid refinances are not sold.

No, unfortunately escrow accounts are not available for rapid refinances. If your current mortgage is escrowed and you choose rapid refinance, your existing escrow funds will be refunded to you or used to reduce your loan amount.

No, a full appraisal of your property is typically not required. If you have concerns about the valuation that we obtain, you can request a full appraisal.

Rapid refinance is available for owner-occupied properties only, including single-family homes, condos, double-wide manufactured homes, and 2- to 4-unit properties in which you reside. Ineligible properties include vacation homes, second homes, single-wide manufactured homes, timeshares and construction loans.

When you apply, your mortgage loan officer will work with you to obtain all required documentation. This typically includes your most recent W-2s and paystubs. If you are self-employed, copies of your most recent federal tax returns are generally acceptable in lieu of W-2s and paystubs. If you are retired, we ask you to provide copies of your SSI or pension award letters, along with account statements showing deposit activity.