Mortgage Refinancing

When you’re ready to secure better home loan terms, you can refinance your mortgage to lower your monthly payment or interest rate.

Your finances, payment preferences, and the market can change drastically over the years after purchasing a home. Maybe your credit has improved so you can qualify for better terms, or interest rates have dropped across the board, or you want to borrow against the equity in your home to cover various costs. Refinancing your mortgage gives you the flexibility to do any of those, plus more. At Listerhill, our team is here to help you achieve your refinancing goals, whatever they may be.

  • Low fixed interest rates 
  • Flexible loan terms including a 15 and 30-year loan
  • Up to 85% financing with no PMI
What is Mortgage Refinancing?

When you refinance your mortgage, you essentially replace your original mortgage and abide by your new home loan terms. The terms that change can depend upon your goals, whether you want to reduce your interest rate, pay your loan off quicker, or go from a fixed rate to an adjustable rate or vice versa. 

Refinancing your mortgage gives you the freedom to pay off your home on your terms. 

Benefits of Mortgage Refinancing

Refinancing your mortgage comes with a slew of benefits, so if you’re in the right place to refinance, you can take advantage of some of these benefits:

  • A lower interest rate: If mortgage rates have fallen or if your credit profile has improved since your original mortgage, you can secure a lower interest rate and pay less in interest over the life of your loan.
  • Reduced monthly payments: Lower interest rates reduce your monthly payment so that you can have more flexibility in your budget.
  • Borrowing money: If you choose a cash-out refinance, you can borrow against the equity in your home to use for any purpose, whether you want to consolidate debt or complete home renovations.
  • Shorter loan term: Perhaps you want to pay off your home quicker. In that case, you can reduce your loan term from a 30 year to a 15-year mortgage. While doing so will increase your monthly payment, it will allow you to be mortgage-free faster.
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Product Features
Pay Back on Your Terms

Consult with one of our friendly loan officers about a payback term that fits your goals.

Convenient Payment Options

Conveniently pay off your loan through Online or Mobile Banking, automatic payments, or your local branch.

Electronic Mortgage Application Process

Buy your home without ever entering a branch.

No Charge for Mortgage Insurance

When you get an In House Loan with Listerhill, pay no monthly charge for Mortgage Insurance so you can dedicate your full monthly payment to your actual loan. 

Adjustable or Fixed Rates

Get into a home with a low adjustable rate or at a fixed rate set by the market.

Requirements for Mortgage Refinancing

To qualify for a mortgage refinancing, we will look at your financial background to determine whether you have a manageable level of debt, steady income, good credit history, qualifying homeownership period, and home equity.

Debt to income ratio: We will review your debt to income ratio (DTI) to ensure you don’t have more debt than your income can manage. A recommended DTI, including your mortgage payment, is no more than 43%. 

Steady income: Whether you’re self-employed or have a W2 job, we want to ensure that you have a stable work history showcasing your likelihood of being able to afford your home now and in the future. Two years of consistent employment are typically required to qualify for a home loan.

Credit history: Your credit score is a significant indicator of your financial responsibility. We will review your credit history and credit score to determine whether you have the background that showcases your ability to manage mortgage payments. 

Homeownership period: In many circumstances, you need to hold the title to your home for a set period; generally, 6 months, to refinance your mortgage.

Home equity: Additionally, you want to have equity in your home before refinancing. This is especially important if you're going to complete a cash-out refinance. 

While we look at these five factors to help you qualify for a mortgage, we also realize this is not black and white and will review your full profile and speak with you directly to get you the loan you want and can afford.

Frequently Asked Questions

  • Does it matter who your mortgage is with?

    Yes because choosing the right lender for your home loan or refinance can lead to a better transaction overall. This is especially important if you are a first time homebuyer or attempting to qualify under special circumstances.

  • Why choose Listerhill for my mortgage?

    At Listerhill, our focus is on “people helping people.” When you purchase a home, we want to offer you the support you need from application to closing. 

    As a nonprofit cooperative owned and operated by its members, you own an equal “share” in Listerhill and vote in elections for the Board of Directors and Supervisory Committee.  That means your voice is always heard, and in turn, our actions reflect your needs and desires. 

    Our mortgage rates, terms, and policies will always reflect your needs in securing the best credit union mortgage loan in Alabama. 

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  • Is a credit union better for mortgages?

    Securing a mortgage through a credit union is preferable for many seeking to purchase a new home or refinance.  Credit unions often offer more competitive mortgage rates in Alabama and are more flexible with their terms and conditions. 

  • When does it make sense to refinance a mortgage?

    Refinancing your home loan can be a great option to secure a better loan for your current circumstances and future goals. It makes sense to refinance your mortgage if one of the benefits will be helpful for you:

    • Secure a lower interest rate
    • Reduce your mortgage term
    • Switch from an adjustable-rate mortgage to a fixed-rate mortgage or vice versa
    • Borrow against the equity in your home


    If doing any of the above would benefit you, refinancing might be the next best move.

Additional Questions?

Listerhill has been consistently been rated in the top tier for overall satisfaction by our members. While we hope you find the information you need online, we'd be happy to talk with you about questions you may have. Call us at (256) 383-9204 or 1-800-239-6033 for friendly, local assistance. Or even stop by one of our branches for personal service.

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Frequently Asked Questions

  • What can home equity loans be used for?

    Home equity loans provide you with the opportunity to chase dreams to the fullest. Enjoy a vacation with the whole family, invest in a household remodeling project, or even finance an upcoming vehicle purchase with only a few clicks.  If you can dream it, you can achieve it!

  • What type of requirements exist for home equity loans?

    Home equity loans rely on a loan to value ratio (LTV) to disburse funds, meaning that your credit score and home equity value should be fairly substantial to take advantage of all possible benefits. For assistance in the home equity loan pre-approval process, please speak with your local Listerhill Credit Union branch.

  • How do home equity loans work?

    Also known as a second mortgage, home equity loans work by borrowing against the value of your home’s current equity. You may calculate this yourself by subtracting the amount you owe on your mortgage from the value of your home. Home equity loans provide lump-sum funds at fixed rates, creating affordable monthly payments that are consistent and affordable.

  • What information should I know before securing a land loan?

    When you purchase land, you want to ensure that it can be used for the desired purpose. That involves having certain information about the land in advance, such as the items listed below:

    • Land survey to know the boundaries of the property
    • Property easements so you know who has permission to enter or use your land for sewer pipes or cable wires
    • Title search to see what easements are on your land
    • Zoning laws to determine whether the land is zoned for residential use, commercial use, or another option
    • Flood hazard risk, so you’re aware of any extreme weather risks
    • Appraisal so you know the value of the land compared to similar options 
  • When does it make sense to refinance a mortgage?

    Refinancing your home loan can be a great option to secure a better loan for your current circumstances and future goals. It makes sense to refinance your mortgage if one of the benefits will be helpful for you:

    • Secure a lower interest rate
    • Reduce your mortgage term
    • Switch from an adjustable-rate mortgage to a fixed-rate mortgage or vice versa
    • Borrow against the equity in your home


    If doing any of the above would benefit you, refinancing might be the next best move.