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Refinancing a Home Mortgage

To refinance or not to refinance? That’s the question. Take a minute to review how a refinance can benefit you and then we'd love to connect and help you determine the best answer for your needs with our mortgage refinancing solutions. 

Why should you refinance?


1. Using Equity in Your Home

You may be able to free up cash as part of the home refinance process, provided you have enough equity in your home; this process operates much like a home equity loan. This can make good financial sense, because mortgage interest may be tax-deductible. The best part is that in times of declining mortgage rates, you may be able to keep your monthly mortgage payment the same as before you refinanced, even though you have borrowed some cash.

A common myth is that a refinance will affect selling the house, regardless of the amount of your equity. What happens instead is that a refinance swaps out the primary lien on the home with a new one. Although a refi is technically a claim on the property, mortgages aren’t as negative as other types of liens since they don’t involve a dispute and there is an assumption that they will be settled with any proceeds from your sale.

2. Save Money on Loan Interest

Anyone who has ever gotten a mortgage loan will probably agree that one of the most nerve-wracking experiences in their life was watching mortgage interest rates ebb and flow as they gambled on when to lock in a rate on their loan. If the current interest rate is below the rate you’re paying on your mortgage, there may be an opportunity to save money.

Keep in mind though that a refinance includes closing costs, which can range in their percentage of your mortgage principal. You can often roll these costs into your new loan, which will increase your principal amount.

3. Change Your Loan Terms

A third reason to refinance is to get into another type of loan, for example, when a balloon mortgage comes due. Or you may simply want to pay off your mortgage earlier than you originally thought. Extending or shortening your loan terms may make sense financially while also adjusting your payments to better fit your budget.

Part of your refinance will include a credit check, and since your credit can impact your rate, that combined may impact the terms that are best for you. To get a jumpstart on knowing your credit score, First Commonwealth Bank customers have access to Credit Score Manager in online and mobile banking. Learn more.

First@Home Refinancing Solution

The First@Home refinance solution is designed to help homeowners ensure that they have the best rate and term for their mortgage.

  • Available for refinancing your rate, the term of your loan or a cash out
  • Borrow up to 99% of the value of your home
  • No mortgage insurance required
  • Applicants receive free homeownership counseling classes prior to loan closing
  • Must be the applicant’s primary residence
  • Home refinance online

We'd love to connect and help you determine the best solution for your refinancing needs. We are happy to provide Ohio & Pennsylvania bank mortgage refinancing and help you with mortgage refinances near you.

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