Refinancing
Refinancing can make sense in the right circumstances — but it's not always the obvious win it's marketed as. Before you commit, it's worth sitting down with someone who isn't earning a commission on your decision.
AHCOPA offers free, unbiased refinancing counseling. We'll help you understand whether refinancing actually benefits your situation and what to watch out for along the way.
Refinance 101
What to Know Before You Refinance
Refinancing replaces your existing mortgage with a new one — ideally at better terms. But there are real costs and trade-offs that don't always get emphasized by the people selling you the loan.
A few things worth knowing:
Every refinance comes with closing costs. Title insurance, loan origination fees, appraisal fees — these add up, and they reset your loan. Make sure the long-term savings actually outweigh the upfront expense.
A low interest rate doesn't automatically mean refinancing makes sense. If you got your mortgage during the period of historically low rates — roughly 2009 through 2016 — refinancing into today's rates may cost you more over time, not less.
A home equity line of credit may serve you better. If your goal is to access cash for home repairs, debt consolidation, or another large expense, a HELOC can accomplish that without replacing your existing mortgage terms.
Adding debt to your home carries real risk. Whether you're consolidating credit card debt, financing education, or funding renovations, using your home as collateral means your home is on the line if circumstances change.
Get Started
If you're considering refinancing and want to talk it through with a housing counselor, call us to schedule an appointment: (215) 765-1221
You can also review refinancing programs available through the Pennsylvania Housing Finance Agency (PHFA) →
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