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US mortgage modification & refinance FAQs

A mortgage refinance is a new mortgage with new terms that replaces your original mortgage. With a mortgage refinance, you can choose a new rate and repayment period. Choose lower monthly payments over a longer period of time or higher payments over a shorter period of time. 

If you only want to change your mortgage interest rate, you may want to consider a mortgage modification. Unlike a refinance, a mortgage modification allows you to choose a new rate without changing the other terms of your mortgage agreement. If you qualify for a mortgage modification, it is faster and costs less than a mortgage refinance.

A mortgage modification reduces your interest rate without changing the other terms of your mortgage agreement. This way, you can make lower monthly payments while paying off your mortgage within the original timeframe. 

A modification requires less time and money than a mortgage refinance. The one-time processing fee is based on the outstanding principal amount of your mortgage. There are no mortgage fees or closing costs. 

Consider a mortgage modification if: 

  • You have had a mortgage with us for at least 12 months, and 
  • Your mortgage payment has not been more than 30 days late in the last 12 months, and
  • Your mortgage payment has not been late more than one time in the last 24 months, and
  • All of your UNFCU accounts are in good standing, and 
  • The loan-to-value ratio of your home is 90% or less. 

Additional eligibility criteria may apply.

A mortgage modification is available for most UNFCU fixed and adjustable rate mortgages. Email us at loanservicing@unfcu.com to see if you qualify. 

Typically, a refinance costs 3.00–6.00% of the outstanding mortgage principal. You will also need to pay standard mortgage fees and closing costs. If you have had your mortgage with UNFCU for at least 12 months, you may want to explore a mortgage modification.

Yes. If UNFCU is your lender, we can add refinance costs to your new mortgage, based on certain guidelines. Contact a mortgage representative to discuss your situation.

Mortgage tax must be paid on all New York properties, except cooperatives. The mortgage tax ranges from 0.50–2.55% of the mortgage balance at the time of closing. You may be able to reduce this tax when you refinance. Contact a mortgage representative to discuss your options. 

A mortgage refinance requires standard income, asset, and credit history documentation. If the mortgage you are refinancing is with UNFCU, you may need fewer documents.

A mortgage refinance typically needs a new appraisal. You may qualify for a waiver if the mortgage you are refinancing is with UNFCU.

Yes, contact a mortgage representative to discuss your options.