Should You Refinance Your Mortgage in 2025?

Home Blog Should You Refinance Your Mortgage in 2025?

Posted On: May 26, 2025 by Peoples Bank of Kankakee County in: Mortgages

As we move further into 2025, many homeowners are wondering if now is the right time to refinance their mortgage. With changing interest rates, shifts in the housing market, and evolving financial goals, refinancing can offer significant benefits — but it's important to carefully weigh the pros and cons before making a decision to refinance your mortgage.

Why Consider Refinancing?

Lower Interest Rates:
If today's interest rates are lower than the rate you secured when you first purchased your home, refinancing could help you lower your monthly payments and reduce the total amount you pay over the life of the loan.

Shorten Your Loan Term:
Refinancing to a shorter term, like moving from a 30-year mortgage to a 15-year mortgage, can save you money on interest and help you build equity faster — even if your monthly payments increase slightly.

Tap Into Home Equity:
Cash-out refinancing allows you to access the equity you’ve built up in your home. Many homeowners use this option to fund home improvements, pay off higher-interest debt, or cover major expenses like education costs.

Switch Loan Types:
Adjustable-rate mortgages (ARMs) often start with lower rates but can increase over time. Refinancing into a fixed-rate mortgage can offer more stability, especially if you plan to stay in your home for many more years.

Factors to Think About

Closing Costs:
Refinancing isn’t free — you’ll need to account for closing costs, which typically range from 2% to 5% of the loan amount. Make sure the long-term savings from refinancing outweigh these upfront costs.

How Long You Plan to Stay:
If you’re planning to move within the next few years, refinancing may not be the best choice. It often takes several years of lower payments to offset the costs associated with refinancing.

Your Credit Score:
A strong credit score can help you qualify for the best refinancing rates. If your credit has improved significantly since you first purchased your home, you might now qualify for a better loan.

Is 2025 the Right Time for You?

Economic conditions, personal financial goals, and individual mortgage terms all play a role in deciding whether refinancing is right for you this year. It’s a good idea to review your goals, run the numbers carefully, and seek trusted advice before moving forward.

Looking for expert guidance?
At Peoples Bank of Kankakee County, our team is here to help you explore your refinancing options and determine if it's the right move for your future. Contact us today to get started on your path to smarter homeownership!

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

We have standard overdraft practices that are available after your account has been open for 30 days and as long as you maintain your account in good standing.
We also offer an overdraft protection plan, Overdraft Protection Sweep, a link to a savings account. It may be less expensive than our standard overdraft practices. To learn more, ask us about this plan.

This notice explains our standard overdraft practices.

What are the standard overdraft practices that come with my account?

After your account has been open for 30 days and as long as you maintain your account in good standing, we do authorize and pay overdrafts for the following types of transactions:

Checks and other transactions made using your checking account number
Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

ATM transactions
Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

What fees will I be charged if Peoples Bank of Kankakee County pays my overdraft?

Under our standard overdraft practices:

We will charge you a fee of up to $30 each time we pay an overdraft.
The maximum daily overdraft fee per presentment or item paid using the Overdraft Reserve Program is $150.00 per day.
No per item handling fee will be charged on de minimis overdrafts. De minimis overdraft for this policy means transactions that overdraw your account by $30 or less.
There is an overdraft fee of $5 per day that will be charged beginning the 4th consecutive business day your account is overdrawn.

Nonsufficient funds (NSF) fees - if an item drafted by you (such as a check) or a transaction you set up (such as a preauthorized transfer) is presented for payment in an amount that is more than the amount of money in your account and we decide not to pay the item or transaction, you agree that we can charge you an NSF fee for returning the payment. Be aware that such an item or payment may be presented multiple times by the merchant or other payee until it is paid, and that we do not monitor or control the number of times a transaction is presented for payment. You agree that we may charge you an NSF fee each time a payment is presented if the amount of money in your account is not sufficient to cover the payment, regardless of the number of times the payment is presented.

PAYMENT ORDER OF ITEMS - The law permits us to pay items drawn on your account in any order (for purposes of this section "items" means checks, orders and electronic transactions). To assist you in handling your account with us, we are providing you with the following information regarding how we process those items. When processing checks and orders drawn on your account our policy is to pay lower numbered checks and orders in numerical sequence, but electronic transactions are paid first in the order received. The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. There is no policy that is favorable in every instance. If the smallest items are paid first, you may have fewer NSF or overdraft fees, but the largest, and perhaps more important items (such as rent or mortgage payments) might not be paid. However, if the largest items are paid first, your most important items might be paid but it may increase the overdraft or NSF fees if funds are not available to pay all of the items. We think our policy attains a reasonable balance between minimizing additional costs to you and paying your more important items. We encourage you to make careful records and practice good account management. This will help you to avoid creating items without sufficient funds and incurring the resulting fees.

What if I want Peoples Bank of Kankakee County to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions after your account has been open for 30 days, you may opt in.

You have an ongoing right to change this consent at any time. If your overdraft privilege has been revoked for any reason, the opt-in or opt-out selection may not apply. Please contact your nearest office for more information.

Alternate ways to Opt In/Out or make changes:

By Phone. Our Customer Care Representatives can be reached at 815-936-7600.
By Mail. Peoples Bank of Kankakee County, 333 E. Court Street, Kankakee, IL 60901
In Person. Please visit your local office and ask a representative to help you decide which plan is best for you.