When it comes to your mortgage, having the flexibility to adapt to changing interest rates can help you save a lot of money over the life of your loan. That’s why Rural 1st offers a Conversion Program for customers who want to regularly optimize their loan terms.
“As long as you haven’t had a late payment in the last 12 months you can participate in our conversion program when interest rates change for a small one-time conversion fee*,” said Kristy Anderson, director of Rural 1st Customer Care. “By changing (but not extending) your loan’s terms, we can get you a lower interest rate—and even just half a point could save you hundreds or even thousands over the life of the loan.”
Loan conversion is not the same as refinancing and does not require requalification, which means no hassle or hard credit pull. You can convert your loan once every 12 months and you can change more than just your loan interest rate. Some might want to convert to a lower rate or decrease the payment amount, however you can also shorten the term of the original loan or change your loan term or type. For example, it may be possible to change your traditional 30-year mortgage into a 15-year mortgage because your financial situation has changed and you’re now able to pay the loan off faster.
“A great example of how this works is if you have a variable rate mortgage,” Kristy explained. “You could convert to a fixed rate product through our program, which could give you the peace of mind of a lower rate that isn’t going to go up unexpectedly.”
If you have questions or think you may be interested in participating in the Conversion Program, you can reach out to your Rural 1st Loan Officer to get started. To learn more about how our program has made a difference for real customers, check out this story about the River Pointe Ranch in Tennessee.
*Provided that eligibility requirements are met. Conversion has a one-time fee of $750.00. Terms and Conditions may apply. The fee is subject to change without notice.