Lower your rate with RateDrop without refinancing your mortgage.
Take advantage of falling rates without the hassle of refinancing. RateDrop lets you lower your existing mortgage or home equity loan to the current market rate with a simple one-page agreement. No extensive paperwork, no reset of your loan, just a faster, easier way to reduce your payment and save over time.
Here is what happens when you drop your rate.
A lower rate, starting now.
Your rate drops to the current market rate, reducing the total interest you pay over the remaining life of your loan.
Less out of pocket every month.
Your monthly payment is recalculated based on your new rate and remaining term, putting the savings in your pocket right away.
A full reset for adjustable-rate mortgages.
If you have an ARM, your fixed rate period resets completely from the point of RateDrop modification. On a 7/1 ARM modified after three years, your new rate is fixed for another full seven years, not just the four remaining.
Think you qualify for RateDrop? Here is how to find out.
Eligibility does not guarantee a lower rate. Contact us to confirm yours before moving forward.
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Your loan must be currently owned and retained by Firefighters First Credit Union (loans sold to Fannie Mae or Freddie Mac are not eligible). -
No delinquencies of 30 days or more on any loans or accounts with Firefighters First Credit Union in the past 12 months.
Start your RateDrop request.
Take the first step toward a better mortgage rate. Submit your information and we’ll reach out to walk you through the RateDrop process from start to finish.
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Everything you need to know about RateDrop.
What is RateDrop?
RateDrop is an exclusive Firefighters First Credit Union program that allows eligible members to lower the interest rate on their existing Firefighters First Credit Union mortgage or home equity loan to the current market rate, without refinancing. All that is required is a simple one-page signed agreement.
Do I need an appraisal or income documentation?
No. RateDrop does not require an appraisal, income documentation, additional paperwork or a closing to attend.
Is there a fee?
HELOCs have no fee*. For mortgage loans, the fee is $1,000 for loans up to $832,750 and $1,500 for loans over $806,500. Fees cannot be added to the loan balance. If Firefighters First Credit Union is offering refinancing for the same product at no cost, the RateDrop modification is free*.
How many times can I use RateDrop?
As many times as you qualify. There is no limit on the number of modifications, as long as you continue to meet the eligibility requirements each time.
What happens to my ARM’s fixed rate period?
For adjustable rate mortgages, the fixed rate period is fully reset at the point of modification. If you have a 7/1 ARM and request a RateDrop after three years, your new rate is fixed for a full seven years from the modification date.
Does RateDrop apply to loans that were sold to Fannie Mae or Freddie Mac?
No. RateDrop is only available for loans currently owned and retained by Firefighters First Credit Union. Loans sold to Fannie Mae, Freddie Mac or any other third-party investor are not eligible.
How is my new rate determined?
Your rate will be lowered to the current market rate at the time of your request. Your rate will vary based on your FICO score and other factors.
1. Standard underwriting guidelines, fees, terms and conditions apply. Call for details. Eligibility requires no previous loans with the Credit Union that were 30 or more days delinquent over the past 12 months. The loan must be owned by the Credit Union. Loans sold to Fannie Mae or Freddie Mac are not eligible. Fee of $1,000 for loans less than $832,750 and $1,500 for loans greater than $832,750. If we are offering refinancing for the same product at no cost, the modification will be free. Fees cannot be added to the balance of the loan. Your rate will vary based on FICO score. Contact us for more information.
RateDrop is only valid for loans currently owned by Firefighters First Credit Union.
* No Fees means $0.00 in fees.
For HELOC product: floor rate 3.250%. Maximum Annual Percentage Rate: 16.00%. Rate adjustment review period: every six months. Rate cannot change by more than 1% (up or down) on any change date.
Representative Example: Home Equity Line of Credit (HELOC) limit of $300,000. If the 1st draw (30% of the limit) and 2nd draw (20% of the limit) totaling 50% of the HELOC limit are taken within the first 6-month period at 9.000%, this would result in a balance of $150,000 with an interest-only payment of $1,125. If a 3rd draw (20% of the limit) occurs within the next 6-month period at a rate of 10.000%, this results in a total balance of $225,000 with a total interest-only payment of $1,875.00. After one year, if all draws have been drawn, this would result in a HELOC balance of $300,000 at a rate of 11.000% with a payment of $2,750.00.
APR = Annual Percentage Rate.
ARM = Adjustable-Rate Mortgage.
NMLS ID #649058.
Subject to credit approval.