November 12, 2024 • 17 mins
Curious about how refinancing could become your financial lifeline amid rising mortgage rates? Join us as we welcome Laura Hawthorne, Centric's Chief Consumer Lender, who brings over 25 years of expertise to unravel the complexities of mortgage rates and refinancing. Laura shares her invaluable insights into the current state of mortgage rates, discusses the resulting affordability concerns for potential homeowners. You'll learn about Centric's comprehensive support services, including financial counselors and a dedicated mortgage team ready to guide first-time homebuyers through the maze of borrowing, insurance, and property taxes.
Discover the pivotal role refinancing can play in enhancing cash flow and how it aligns with your personal financial goals. We emphasize the importance of understanding your current interest rate and clarify the motives behind refinancing, whether it's to secure a lower rate or to create more manageable monthly payments. This episode highlights the crucial benefit of consulting with financial counselors and explores debt consolidation as a means of simplifying payments. We also touch on the advantage of seeking pre-approval for new purchases and leveraging tools to find the best deals, even beyond your local area. Tune in for a wealth of expert advice that could transform your financial future.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Kelli Green (00:00):
Welcome back to an episode of the Live Better
podcast with Centric.
I'm your host and CentricSenior Vice President of
Marketing, K Green.
I'm so excited that you're here.
Every month we post a newepisode where I'm joined by an
expert guest to chat aboutfinances and all things living
better.
Subscribe today so that younever miss an episode.
And today we are joined byLaura Hawthorne.
(00:22):
She is our Chief ConsumerLender right here at Centric.
She's joining us to discussbenefits of a refinance and when
to consider this as a financialsolution.
So good morning, laura.
It's a very special day for us.
We are celebrating the birth ofLaura, and she has been just
(00:44):
such a great friend to us and anexpert here at the credit union
and has served many of ourmembers for how many years?
20, 25 years.
I love it Well, so you are nota new guest, so to speak, to our
podcast, but we may have somenew listeners, so if you would
maybe just share with us a fewthings about yourself personally
(01:06):
and professionally, sure.
Laura Hawthorne (01:08):
Well, like we mentioned a while ago, I've been
with Centric for 25 years.
I've been, I've worked inpretty much every department
that credit union has.
My husband and I have beenmarried for 22 years.
Kelli Green (01:27):
So you mean your relationship with Centric is
longer than the one with yourhusband?
If you count marriage.
I have two girls 19 and 16,which there could be all kinds
of stories and we don't havetime for all that today.
But yeah, I really like what Ido.
I love the people that I workwith and Centric has been really
good to me.
You know you're talking about being a mom and a
(01:50):
wife.
You know, check back with usnext time when we do a parenting
and family podcast, because Iknow you can share all kinds of
neat things with raising twoteenage girls at the same time.
So many of us would benefitfrom that for sure.
So let's just jump into ourtopic today, because we
recognize you know too thatwe've heard a lot of buzz about
the Fed dropping rate, whichthey did.
(02:13):
And then you go and look at the30-year mortgage, which just
jumped up a half a point.
Laura Hawthorne (02:18):
That's kind of surprising.
Didn't expect that.
Kelli Green (02:20):
Right.
And so we were not expectingthat in the slightest.
And do you think, maybe,potentially, that with the
election that's coming up, thatthat may have something to do
with it?
Or really, what posed thenecessity
Laura Hawthorne (02:33):
I really, I mean, they always say that the
election is gonna effect ratesin some form or fashion.
It's always a battle, but theykind of went back up a little
(02:57):
bit because they dropped andbecause demand probably flooded
while everybody's been waitingfor them to drop, right, so then
they did drop.
Everybody's running to, buytheir new home.
And I just think that'sprobably what kind of caused the
rates to bump back in the otherdirection.
Kelli Green (03:16):
Such a shift.
I think I read and so I can putthis in the show notes, but one
of the things I was looking atthere was a statistic from a
financial expert that posted theaverage home in the entire
nation.
Now, this is not localized toour area, but when you think
about you know the rates beinganywhere from 6.75 to 8% in some
(03:36):
cases and you look at that, theaverage home is like selling
for 450, which puts yourmortgage at right around $33,000
to $3,500 a month.
When you think about insurance,and so it's just it's almost
impossible for average familiestoday to really be a homeowner.
Laura Hawthorne (03:57):
It really is.
It really really is.
Kelli Green (03:59):
So what are some things here at Centric, maybe,
that we offer in that regard?
You know, that might besomething that could be
beneficial to our first-timehomebuyers, or even somebody who
might be in the market If thatwere you and just I know this is
just an opinion what issomething that you might
recommend to someone who'sreally thinking about?
You know, seeing as being ahomeowner is like the financial
(04:20):
dream, you know.
Laura Hawthorne (04:21):
Well, first thing you should do is come in
and talk to one of our financialcounselors or one of our
mortgage team members.
The mortgage team members canreally line out all the steps
that go into one borrowing thefunds what type of rates you're
going to have.
Are you going to have closingcosts?
What are those closing costs?
(04:42):
You know average or you knowapproximately?
Come up to?
What does insurance look like?
What are property taxes lookinglike?
How much of a mortgage can youafford?
And then what the rate has beendoing in the market, whether or
not it's been slowly going down.
And do we want to wait a littlebit longer to try and get the
(05:04):
lowest rate that we can?
Or is now a good time to lockif we're really sure that this
is where we want to be, becausethere's a chance they could go
back up?
Kelli Green (05:12):
That's right that's why a lot of people talk about,
you know, the adjustable ratesand is that something to really
consider, I would say, in thismarket?
It's scary, you know.
I don't know that I would go inthat direction, but just
thinking about it, you know, ishow can someone really prepare?
And if, if they're maybethinking, maybe consider a time
that's a little less volatile,but everybody's situation is a
(05:34):
little different, you know, ifyou're looking for maybe a
smaller home and you've got,you've saved up a great, you
know, 20%, this might besomething that's okay for you
and you can always refinance.
That's something that you knowwe've really really wanted to
share and talk aboutspecifically today.
Certain that you know we'vereally really wanted to share
and talk about specificallytoday.
But just with the recentincrease as far as that 30-year
(05:58):
mortgage rate, those are somethings I really wanted to kind
of call out this morning aswe're talking about it.
But there has been a buzz fromthe consumer side where the
rates have dropped a little bit,and here at the credit union we
know that we are very muchknown for lower auto, rv and any
rates, essentially from aconsumer standpoint.
So we're thinking about thatwhen we're thinking, okay, how
(06:19):
do we know if a refinance isgood for us?
Laura Hawthorne (06:24):
Number one know what your current rate is.
So is the rate better for youor is it still a little bit on
the high side compared to whereyou already are?
So just kind of understandingthat, I think, is initially the
key.
Second thing is is when youstart talking about refinancing,
you know, are you looking for alower rate so you pay less in
(06:44):
interest, or you look for alower payment because you want
to create cash flow?
Those can come, you know thoseare two separate things for two
separate reasons.
Creating cash flow can be donein a multipulsive way.
You know, if there's a drasticdip in your interest rate that
can create a lower monthlypayment.
If you decide to refinance butextend the original term back
(07:08):
out, you know, to give you alittle bit of flexibility in
just in the monthly cash flow,you can do that.
But you have to be kind ofcautious and really know what it
is that you're looking for,Because if you extend that term
back out you're just going topay in interest, that's right.
So do you want to pay aninterest over the long term or
do you want to pay more ininterest now?
Just kind of reallyunderstanding what your goal is
(07:29):
is key an interest now.
Kelli Green (07:31):
Just kind of really understanding what your goal is
is key.
So just to kind of recap thatyou know and understanding if a
refinance is really the bestoption for you is first knowing
what interest rate that you'repaying.
And a lot of our members,whenever they are searching for
a vehicle or they're inquiringabout a purchase for anything
really, it is what is my payment.
A purchase for anything, reallyit is what is my payment.
(07:54):
And that, unfortunately, is adriver for a lot of Americans,
because cash flow, as youmentioned, is something that
managing your budget from monthto month or between paycheck to
paycheck.
We're stretched even more sothan we've probably been in a
very long time.
Laura Hawthorne (08:06):
Right now, that's super key.
Everything costs more and asprices for just your normal
daily needs go up, your cashflow gets tighter, and you
haven't even touched your carpayment yet.
Kelli Green (08:20):
And it's wild, and so we're thinking about.
You know, we've got theholidays and when we have other
expenses too, when students goback to school, those are
usually two of the most costlyexpenses throughout the year,
and people are constantlylooking for ways in which they
can make ends meet or achievethis.
You know, expense for theirchild or if it's an emergency,
(08:43):
people will find a way, nomatter what that might cost them
.
So one of the things I reallywant us to think about, too, is
if you are finding yourself in asituation where you have more
month left out of your paycheck,then we really need to consider
visiting with one of ourfinancial counselors which is
free and understanding.
(09:04):
We can retrieve a full creditreport, which at that time, they
have that opportunity to reviewwhat interest rate people are
paying on each individualresponsibility or financial
commitment, and the best way todo that is just taking a look at
it and speaking with that.
Debt consolidation is an option.
Yes, that's a lot of times andjust so for people who are
(09:26):
listening, what is a debtconsolidation and maybe you know
how might you even get startedwith that?
It's really just combiningmultiple payments into one.
That's correct.
So to recap.
Really, what you're talkingabout is knowing your rate and
understanding what is yourmotive when you're considering a
refinance.
That is the key.
So for our folks who might beconsidering and saying you know,
(09:49):
this is something that I mightwant to think about, because if
I can refinance to give me morecash throughout the month, you
want to have the understandingwhere you might actually end up.
If you're extending that term,you'll be paying more for that
auto or that collateral,whatever that is.
You'll be paying more for thatin the long run.
Yes, so that's why, when a lotof our members mention that
(10:10):
they're so payment driven, itkind of makes our loan officers
think oh, what do you feel?
Laura Hawthorne (10:17):
Well, we want to put the member in the best
situation.
You know our job, and we'vesaid this before our job is to
help you pay less yes, not paymore.
So, really just trulyunderstanding the motive and the
need for that particular memberand driven to ask these
questions, what are we reallylooking for?
(10:47):
And making sure that we buildthat for them to the best that's
going to benefit them the best.
Kelli Green (10:53):
Oh, yeah, and sometimes a refinance can be
great, you know, when you'rethinking about that there's also
different options too.
As far as the refinance isconcerned, it's just I think
it's so great and especially asthis timeliness and when we know
, actually in the timeframe ofthis particular podcast, you
think about retrieving a creditreport and doing an overall
(11:16):
financial assessment, this is areally good time to do that.
So just to get an actual reviewof your credit report will allow
you the opportunity just to seeexactly what you owe, who you
owe and really what's beingreported.
Is it accurate?
Is that timely?
You know, we really want tomake sure that our members are
(11:37):
aware of what is exactly beingposted.
So really and truly thinkingabout as far as refinancing to
lower monthly payments, soreally and truly thinking about
as far as refinancing to lowermonthly payments, that really
could be a priority for so manypeople.
And in your recommendation,just as we're kind of wrapping
up some of the things that we'vebeen talking about, if someone
is really considering arefinance just to kind of allow
their budget to air out just alittle bit, what's the first
(12:00):
thing they should do?
Come in and talk to us.
Laura Hawthorne (12:02):
Yeah, come talk to one of our experts.
We have 60 plus financialcounselors.
They can get you started andthen, as we determine what those
particulars are, we can pairyou with another expert that is
in that field.
Kelli Green (12:15):
Yeah.
Laura Hawthorne (12:15):
So yes, please come see us first.
Kelli Green (12:18):
Yeah, and the other thing too if you're even
thinking about a brand newpurchase, consider talking about
a pre-approval first.
Absolutely.
We also even have a tool foryou to shop if you're looking
for a vehicle.
Laura Hawthorne (12:30):
Yes, we do A lot of dealerships and you can
extend that radius to severalhundred miles.
Oh yeah, because sometimes thebest deal is sometimes found out
of town.
It is.
Kelli Green (12:41):
And you know the one thing.
You know, we always really tryto push for folks to purchase
things locally and when you areable to see if there is a new to
you, new or used vehicle thatmight be outside of the market,
share that information withlocal dealers and say, hey,
here's what I'm having.
You know what is available tome.
I'd really love you know to domy business here.
(13:02):
But the first thing is toreally and truly secure your
financing and to do that here atCentric Because, as we know
that credit unions have muchlower interest rates when you
compare those to the nationalaverage, and I encourage you as
a consumer any of our listenersto really take a look at that
before you just pull the trigger.
I know that nice new car smellis great, but in this particular
(13:26):
environment is it somethingthat, if you kind of like your
car and you know it's in reallygood shape right now, might be a
good time for you to say youknow what?
I'm going to maintain thisvehicle.
Laura Hawthorne (13:36):
That new car smell doesn't last as long as
that payment.
Kelli Green (13:39):
That's exactly right and you think about okay,
let me maintain what I have andthen consider if you do need to
air out your payments a littlebit just to give you a little
bit of room in your monthlybudget.
A refinance might be somethingthat is available to you.
And one of the final thingsthat I wanted to share and not
everyone, it's kind of rare, butI have seen it happen.
It's just a cash out options.
Laura Hawthorne (14:01):
They do exist, but they're few and far between
Well, especially when you'redealing with vehicles, because
values of vehicles fluctuate sovolatile I guess it's really the
word you know.
They were very high duringCOVID, right after COVID, just
due to demand and then lack ofsupply.
(14:22):
And now that the supply isstarting to build back up, the
value isn't because the demandfor the vehicles is not as great
, Right.
So you kind of have to becareful in those.
Most of your cash out optionsare really going to come from
your mortgage refis orpotentially a HELOC.
That's right If you're needingfunds for a particular project
(14:44):
situation.
Kelli Green (14:46):
And again, there are options and ways in which
you can just speak to an expert.
If you're looking at, maybecash out or refinance in another
, you know, in for a vehicle orwhat have you you want to think
about, would we speak to aconsumer lender or would we
speak to a mortgage lender?
And there's a multitude of waysthat you can reach them.
It's either by phone, text, inperson, online submission really
(15:10):
works too.
There's so many ways that ourfolks can really get in touch
with someone if they maybearen't available, where they can
come in.
So that's something we reallywant to think about too.
So, but nonetheless, I justreally want to.
You know, certainly.
Thank you so much, though,laura, too, for coming in, and
just as we're wrapping up, isthere potentially anything else
(15:31):
that you want to share to ourlisteners, who may be a member
or maybe not be a member, butthey're just really interested
in looking at one?
Is a refinance really right forme?
Laura Hawthorne (15:42):
Well, again, I'll just say come talk to us,
come talk to one of our manyexperts and let us sit down and
really go through what yourgoals are, what your thoughts
are, and then we can line outwhat options may be available to
you.
Perfect, I love it.
Kelli Green (15:59):
Well, everyone, we just thank you so much for
joining us, just as we reallykind of wrap up and talk about a
couple things.
That we're discussing today isreally understanding knowing
your rate that you're currentlypaying and is there a lower rate
?
That we're discussing today isreally understanding knowing
your rate that you're currentlypaying and are is there a lower
rate that you might qualify for,and that's something to really
think about.
You could refinance andmaintain your term if you have a
lower rate and you're notextending that payment.
(16:21):
That's something that youreally that would be the best
case scenario, honestly, and ifyou could ever shorten your term
where you can, you know, reallyafford if you have a few extra
dollars that it allows you topay that off so much sooner,
which means you're paying lessoverall, your future self.
Well, thank you, yes.
So nonetheless, though, we haveoptions that are available for
(16:41):
folks, and here's the thing ifyou're not qualifying today for
a lower interest rate, or ifperhaps, you come in and you
speak with someone and maybethose lower interest rates are
just not available for you today, give us a chance to talk
through and what are some thingsthat you can do to help improve
your overall credit score.
So thank you all so much forlistening to our podcast and
(17:02):
tune back in next month foranother episode of our Live
Better podcast with Centric.
Don't forget to subscribe toLive Better podcast on your
favorite podcast platform and toensure you never miss out on
helpful tips.
Like us on Facebook at CentricFederal Credit Union and find us
at MyCentric on Instagram,Pinterest, TikTok and YouTube.
(17:23):
You can find more informationabout today's topic, our monthly
blog and more at MyCentricorg.
Centric is federally insured bythe NCUA.
Welcome back to an episode of the Live Better
podcast with Centric.
I'm your host and CentricSenior Vice President of
Marketing, K Green.
I'm so excited that you're here.
Every month we post a newepisode where I'm joined by an
expert guest to chat aboutfinances and all things living
better.
Subscribe today so that younever miss an episode.
And today we are joined byLaura Hawthorne.
(00:22):
She is our Chief ConsumerLender right here at Centric.
She's joining us to discussbenefits of a refinance and when
to consider this as a financialsolution.
So good morning, laura.
It's a very special day for us.
We are celebrating the birth ofLaura, and she has been just
(00:44):
such a great friend to us and anexpert here at the credit union
and has served many of ourmembers for how many years?
20, 25 years.
I love it Well, so you are nota new guest, so to speak, to our
podcast, but we may have somenew listeners, so if you would
maybe just share with us a fewthings about yourself personally
(01:06):
and professionally, sure.
Laura Hawthorne (01:08):
Well, like we mentioned a while ago, I've been
with Centric for 25 years.
I've been, I've worked inpretty much every department
that credit union has.
My husband and I have beenmarried for 22 years.
Kelli Green (01:27):
So you mean your relationship with Centric is
longer than the one with yourhusband?
If you count marriage.
I have two girls 19 and 16,which there could be all kinds
of stories and we don't havetime for all that today.
But yeah, I really like what Ido.
I love the people that I workwith and Centric has been really
good to me.
You know you're talking about being a mom and a
(01:50):
wife.
You know, check back with usnext time when we do a parenting
and family podcast, because Iknow you can share all kinds of
neat things with raising twoteenage girls at the same time.
So many of us would benefitfrom that for sure.
So let's just jump into ourtopic today, because we
recognize you know too thatwe've heard a lot of buzz about
the Fed dropping rate, whichthey did.
(02:13):
And then you go and look at the30-year mortgage, which just
jumped up a half a point.
Laura Hawthorne (02:18):
That's kind of surprising.
Didn't expect that.
Kelli Green (02:20):
Right.
And so we were not expectingthat in the slightest.
And do you think, maybe,potentially, that with the
election that's coming up, thatthat may have something to do
with it?
Or really, what posed thenecessity
Laura Hawthorne (02:33):
I really, I mean, they always say that the
election is gonna effect ratesin some form or fashion.
It's always a battle, but theykind of went back up a little
(02:57):
bit because they dropped andbecause demand probably flooded
while everybody's been waitingfor them to drop, right, so then
they did drop.
Everybody's running to, buytheir new home.
And I just think that'sprobably what kind of caused the
rates to bump back in the otherdirection.
Kelli Green (03:16):
Such a shift.
I think I read and so I can putthis in the show notes, but one
of the things I was looking atthere was a statistic from a
financial expert that posted theaverage home in the entire
nation.
Now, this is not localized toour area, but when you think
about you know the rates beinganywhere from 6.75 to 8% in some
(03:36):
cases and you look at that, theaverage home is like selling
for 450, which puts yourmortgage at right around $33,000
to $3,500 a month.
When you think about insurance,and so it's just it's almost
impossible for average familiestoday to really be a homeowner.
Laura Hawthorne (03:57):
It really is.
It really really is.
Kelli Green (03:59):
So what are some things here at Centric, maybe,
that we offer in that regard?
You know, that might besomething that could be
beneficial to our first-timehomebuyers, or even somebody who
might be in the market If thatwere you and just I know this is
just an opinion what issomething that you might
recommend to someone who'sreally thinking about?
You know, seeing as being ahomeowner is like the financial
(04:20):
dream, you know.
Laura Hawthorne (04:21):
Well, first thing you should do is come in
and talk to one of our financialcounselors or one of our
mortgage team members.
The mortgage team members canreally line out all the steps
that go into one borrowing thefunds what type of rates you're
going to have.
Are you going to have closingcosts?
What are those closing costs?
(04:42):
You know average or you knowapproximately?
Come up to?
What does insurance look like?
What are property taxes lookinglike?
How much of a mortgage can youafford?
And then what the rate has beendoing in the market, whether or
not it's been slowly going down.
And do we want to wait a littlebit longer to try and get the
(05:04):
lowest rate that we can?
Or is now a good time to lockif we're really sure that this
is where we want to be, becausethere's a chance they could go
back up?
Kelli Green (05:12):
That's right that's why a lot of people talk about,
you know, the adjustable ratesand is that something to really
consider, I would say, in thismarket?
It's scary, you know.
I don't know that I would go inthat direction, but just
thinking about it, you know, ishow can someone really prepare?
And if, if they're maybethinking, maybe consider a time
that's a little less volatile,but everybody's situation is a
(05:34):
little different, you know, ifyou're looking for maybe a
smaller home and you've got,you've saved up a great, you
know, 20%, this might besomething that's okay for you
and you can always refinance.
That's something that you knowwe've really really wanted to
share and talk aboutspecifically today.
Certain that you know we'vereally really wanted to share
and talk about specificallytoday.
But just with the recentincrease as far as that 30-year
(05:58):
mortgage rate, those are somethings I really wanted to kind
of call out this morning aswe're talking about it.
But there has been a buzz fromthe consumer side where the
rates have dropped a little bit,and here at the credit union we
know that we are very muchknown for lower auto, rv and any
rates, essentially from aconsumer standpoint.
So we're thinking about thatwhen we're thinking, okay, how
(06:19):
do we know if a refinance isgood for us?
Laura Hawthorne (06:24):
Number one know what your current rate is.
So is the rate better for youor is it still a little bit on
the high side compared to whereyou already are?
So just kind of understandingthat, I think, is initially the
key.
Second thing is is when youstart talking about refinancing,
you know, are you looking for alower rate so you pay less in
(06:44):
interest, or you look for alower payment because you want
to create cash flow?
Those can come, you know thoseare two separate things for two
separate reasons.
Creating cash flow can be donein a multipulsive way.
You know, if there's a drasticdip in your interest rate that
can create a lower monthlypayment.
If you decide to refinance butextend the original term back
(07:08):
out, you know, to give you alittle bit of flexibility in
just in the monthly cash flow,you can do that.
But you have to be kind ofcautious and really know what it
is that you're looking for,Because if you extend that term
back out you're just going topay in interest, that's right.
So do you want to pay aninterest over the long term or
do you want to pay more ininterest now?
Just kind of reallyunderstanding what your goal is
(07:29):
is key an interest now.
Kelli Green (07:31):
Just kind of really understanding what your goal is
is key.
So just to kind of recap thatyou know and understanding if a
refinance is really the bestoption for you is first knowing
what interest rate that you'repaying.
And a lot of our members,whenever they are searching for
a vehicle or they're inquiringabout a purchase for anything
really, it is what is my payment.
A purchase for anything, reallyit is what is my payment.
(07:54):
And that, unfortunately, is adriver for a lot of Americans,
because cash flow, as youmentioned, is something that
managing your budget from monthto month or between paycheck to
paycheck.
We're stretched even more sothan we've probably been in a
very long time.
Laura Hawthorne (08:06):
Right now, that's super key.
Everything costs more and asprices for just your normal
daily needs go up, your cashflow gets tighter, and you
haven't even touched your carpayment yet.
Kelli Green (08:20):
And it's wild, and so we're thinking about.
You know, we've got theholidays and when we have other
expenses too, when students goback to school, those are
usually two of the most costlyexpenses throughout the year,
and people are constantlylooking for ways in which they
can make ends meet or achievethis.
You know, expense for theirchild or if it's an emergency,
(08:43):
people will find a way, nomatter what that might cost them
.
So one of the things I reallywant us to think about, too, is
if you are finding yourself in asituation where you have more
month left out of your paycheck,then we really need to consider
visiting with one of ourfinancial counselors which is
free and understanding.
(09:04):
We can retrieve a full creditreport, which at that time, they
have that opportunity to reviewwhat interest rate people are
paying on each individualresponsibility or financial
commitment, and the best way todo that is just taking a look at
it and speaking with that.
Debt consolidation is an option.
Yes, that's a lot of times andjust so for people who are
(09:26):
listening, what is a debtconsolidation and maybe you know
how might you even get startedwith that?
It's really just combiningmultiple payments into one.
That's correct.
So to recap.
Really, what you're talkingabout is knowing your rate and
understanding what is yourmotive when you're considering a
refinance.
That is the key.
So for our folks who might beconsidering and saying you know,
(09:49):
this is something that I mightwant to think about, because if
I can refinance to give me morecash throughout the month, you
want to have the understandingwhere you might actually end up.
If you're extending that term,you'll be paying more for that
auto or that collateral,whatever that is.
You'll be paying more for thatin the long run.
Yes, so that's why, when a lotof our members mention that
(10:10):
they're so payment driven, itkind of makes our loan officers
think oh, what do you feel?
Laura Hawthorne (10:17):
Well, we want to put the member in the best
situation.
You know our job, and we'vesaid this before our job is to
help you pay less yes, not paymore.
So, really just trulyunderstanding the motive and the
need for that particular memberand driven to ask these
questions, what are we reallylooking for?
(10:47):
And making sure that we buildthat for them to the best that's
going to benefit them the best.
Kelli Green (10:53):
Oh, yeah, and sometimes a refinance can be
great, you know, when you'rethinking about that there's also
different options too.
As far as the refinance isconcerned, it's just I think
it's so great and especially asthis timeliness and when we know
, actually in the timeframe ofthis particular podcast, you
think about retrieving a creditreport and doing an overall
(11:16):
financial assessment, this is areally good time to do that.
So just to get an actual reviewof your credit report will allow
you the opportunity just to seeexactly what you owe, who you
owe and really what's beingreported.
Is it accurate?
Is that timely?
You know, we really want tomake sure that our members are
(11:37):
aware of what is exactly beingposted.
So really and truly thinkingabout as far as refinancing to
lower monthly payments, soreally and truly thinking about
as far as refinancing to lowermonthly payments, that really
could be a priority for so manypeople.
And in your recommendation,just as we're kind of wrapping
up some of the things that we'vebeen talking about, if someone
is really considering arefinance just to kind of allow
their budget to air out just alittle bit, what's the first
(12:00):
thing they should do?
Come in and talk to us.
Laura Hawthorne (12:02):
Yeah, come talk to one of our experts.
We have 60 plus financialcounselors.
They can get you started andthen, as we determine what those
particulars are, we can pairyou with another expert that is
in that field.
Kelli Green (12:15):
Yeah.
Laura Hawthorne (12:15):
So yes, please come see us first.
Kelli Green (12:18):
Yeah, and the other thing too if you're even
thinking about a brand newpurchase, consider talking about
a pre-approval first.
Absolutely.
We also even have a tool foryou to shop if you're looking
for a vehicle.
Laura Hawthorne (12:30):
Yes, we do A lot of dealerships and you can
extend that radius to severalhundred miles.
Oh yeah, because sometimes thebest deal is sometimes found out
of town.
It is.
Kelli Green (12:41):
And you know the one thing.
You know, we always really tryto push for folks to purchase
things locally and when you areable to see if there is a new to
you, new or used vehicle thatmight be outside of the market,
share that information withlocal dealers and say, hey,
here's what I'm having.
You know what is available tome.
I'd really love you know to domy business here.
(13:02):
But the first thing is toreally and truly secure your
financing and to do that here atCentric Because, as we know
that credit unions have muchlower interest rates when you
compare those to the nationalaverage, and I encourage you as
a consumer any of our listenersto really take a look at that
before you just pull the trigger.
I know that nice new car smellis great, but in this particular
(13:26):
environment is it somethingthat, if you kind of like your
car and you know it's in reallygood shape right now, might be a
good time for you to say youknow what?
I'm going to maintain thisvehicle.
Laura Hawthorne (13:36):
That new car smell doesn't last as long as
that payment.
Kelli Green (13:39):
That's exactly right and you think about okay,
let me maintain what I have andthen consider if you do need to
air out your payments a littlebit just to give you a little
bit of room in your monthlybudget.
A refinance might be somethingthat is available to you.
And one of the final thingsthat I wanted to share and not
everyone, it's kind of rare, butI have seen it happen.
It's just a cash out options.
Laura Hawthorne (14:01):
They do exist, but they're few and far between
Well, especially when you'redealing with vehicles, because
values of vehicles fluctuate sovolatile I guess it's really the
word you know.
They were very high duringCOVID, right after COVID, just
due to demand and then lack ofsupply.
(14:22):
And now that the supply isstarting to build back up, the
value isn't because the demandfor the vehicles is not as great
, Right.
So you kind of have to becareful in those.
Most of your cash out optionsare really going to come from
your mortgage refis orpotentially a HELOC.
That's right If you're needingfunds for a particular project
(14:44):
situation.
Kelli Green (14:46):
And again, there are options and ways in which
you can just speak to an expert.
If you're looking at, maybecash out or refinance in another
, you know, in for a vehicle orwhat have you you want to think
about, would we speak to aconsumer lender or would we
speak to a mortgage lender?
And there's a multitude of waysthat you can reach them.
It's either by phone, text, inperson, online submission really
(15:10):
works too.
There's so many ways that ourfolks can really get in touch
with someone if they maybearen't available, where they can
come in.
So that's something we reallywant to think about too.
So, but nonetheless, I justreally want to.
You know, certainly.
Thank you so much, though,laura, too, for coming in, and
just as we're wrapping up, isthere potentially anything else
(15:31):
that you want to share to ourlisteners, who may be a member
or maybe not be a member, butthey're just really interested
in looking at one?
Is a refinance really right forme?
Laura Hawthorne (15:42):
Well, again, I'll just say come talk to us,
come talk to one of our manyexperts and let us sit down and
really go through what yourgoals are, what your thoughts
are, and then we can line outwhat options may be available to
you.
Perfect, I love it.
Kelli Green (15:59):
Well, everyone, we just thank you so much for
joining us, just as we reallykind of wrap up and talk about a
couple things.
That we're discussing today isreally understanding knowing
your rate that you're currentlypaying and is there a lower rate
?
That we're discussing today isreally understanding knowing
your rate that you're currentlypaying and are is there a lower
rate that you might qualify for,and that's something to really
think about.
You could refinance andmaintain your term if you have a
lower rate and you're notextending that payment.
(16:21):
That's something that youreally that would be the best
case scenario, honestly, and ifyou could ever shorten your term
where you can, you know, reallyafford if you have a few extra
dollars that it allows you topay that off so much sooner,
which means you're paying lessoverall, your future self.
Well, thank you, yes.
So nonetheless, though, we haveoptions that are available for
(16:41):
folks, and here's the thing ifyou're not qualifying today for
a lower interest rate, or ifperhaps, you come in and you
speak with someone and maybethose lower interest rates are
just not available for you today, give us a chance to talk
through and what are some thingsthat you can do to help improve
your overall credit score.
So thank you all so much forlistening to our podcast and
(17:02):
tune back in next month foranother episode of our Live
Better podcast with Centric.
Don't forget to subscribe toLive Better podcast on your
favorite podcast platform and toensure you never miss out on
helpful tips.
Like us on Facebook at CentricFederal Credit Union and find us
at MyCentric on Instagram,Pinterest, TikTok and YouTube.
(17:23):
You can find more informationabout today's topic, our monthly
blog and more at MyCentricorg.
Centric is federally insured bythe NCUA.
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