What is the difference between rate-and-term refinancing and cash-out refinancing?

Rate-and-term refinancing replaces your existing mortgage with a new loan at a different interest rate, a different loan term, or both, without changing your loan balance in a meaningful way. Cash-out refinancing replaces your mortgage with a larger loan, with the difference paid to you in cash at closing. Cash-out refinancing can be used to fund home improvements, consolidate debt, or cover major expenses.

How much home equity do I need to refinance my mortgage?

Most conventional refinance programs require at least 20% equity in your home to avoid private mortgage insurance. Borrowers with less equity may still qualify through programs like Freddie Mac Refi Possible, which Peoples Security Bank and Trust offers for eligible low-income borrowers with an existing Freddie Mac-owned loan. Contact a PSBT loan officer for a personalized review of your equity position and available options.

Does PSBT offer a rate discount on mortgage refinancing?

Yes. Peoples Security Bank and Trust offers a 0.25% rate discount for customers who enroll in automatic payment (autodraft) from a PSBT checking account. This is one of the largest relationship rate discounts among community banks in Pennsylvania, New Jersey, and New York.

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Mortgage Refinancing in PA, NY, & NJ

Q: What documents do I need to refinance my mortgage?

Standard refinancing documentation typically includes recent pay stubs or proof of income, federal tax returns from the past two years, recent bank and asset statements, your current mortgage statement, a copy of your homeowner's insurance policy, and a government-issued photo ID. PSBT loan officers can walk you through the complete list based on your specific loan program.

Q: Can I refinance my mortgage at any PSBT branch?

Yes. Peoples Security Bank and Trust has branches across Pennsylvania, New Jersey, and New York, and mortgage refinancing is available throughout PSBT's service territory. You can start a conversation with a loan officer at your nearest branch, call 1-844-PSBT-NOW, or submit a contact request online.

Q: Does PSBT offer a grant to help cover refinancing closing costs?

Yes. Through the PSBT Mortgage Refinance Grant Program, eligible low-to-moderate income borrowers may receive up to $500 toward closing costs on a primary residence refinance. Contact a PSBT loan officer to find out whether you qualify.

Flexible refinancing. Local expertise. A rate discount you actually notice.

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Whether you want to lower your monthly payment, lock in a better rate, or tap your home equity for something that matters, PSBT is here to help you through it. As a community bank with 40 branches across Pennsylvania, New Jersey, and New York, we make refinancing decisions locally, with people who know your community and understand your goals.

Refinance your home loan with a lender that picks up the phone, keeps things straightforward, and may give autodraft customers a 0.25% rate discount that can meaningfully reduce your monthly payment over the life of your loan.

Refinancing Products

PSBT offers refinancing solutions for a range of financial situations, from straightforward rate-and-term refinances to programs built specifically for borrowers who need more flexibility.

Standard Mortgage Refinancing

Lower your rate, shorten your term, or take cash out of your home's equity. Available as a fixed-rate or adjustable-rate mortgage.

Rate-and-term refinancing
Cash-out refinancing
Fixed-rate and ARM options

Talk to a Loan Officer

PSBT Exclusive

Peoples Select MTG

A faster, lower-cost refinancing option for owner-occupied primary residences, available exclusively through PSBT.

Refinancing up to $500,000
Streamlined process
Owner-occupied primary residences

Ask About Peoples Select MTG

PSBT Exclusive

PSBT Closing Cost Assistance Program

Up to $500 toward closing costs for qualifying low-to-moderate income borrowers refinancing a primary residence.

Up to $500 closing cost assistance
Primary residence refinances
For qualifying LMI borrowers

Check Eligibility

Freddie Mac Refi Possible

A flexible refinancing pathway for low-income borrowers with an existing Freddie Mac-owned loan who may not qualify for a conventional refinance.

Flexible qualification criteria
For existing Freddie Mac loans
Available for qualifying low-income borrowers

Find Out If You Qualify

*All loans are subject to credit and collateral approval.

Your 0.25% Autodraft Rate Discount

PSBT customers who enroll in automatic payment from a PSBT checking account may receive a 0.25% rate discount on their mortgage refinance. That is one of the largest relationship rate discounts available at any community bank in Pennsylvania, New Jersey, or New York, and it applies for the life of your loan.

If you are already a PSBT checking customer, you may be eligible for this discount from day one of your refinance. Talk to your loan officer about enrolling in autodraft during the application process.

Refinancing Rate and Term Overview

Refinancing rates in PA, NY, and NJ are based on your credit profile, loan amount, home equity, and loan term. PSBT offers both fixed-rate and adjustable-rate options for refinancing, so you can choose the structure that best fits your goals.

Fixed-Rate Refinancing

Your interest rate and monthly payment stay the same for the life of the loan. Ideal if you plan to stay in your home long-term and want payment predictability.

Adjustable-Rate Refinancing (ARM)

Your rate is fixed for an initial period, then adjusts periodically based on market conditions. Can offer lower initial payments if you expect to move or refinance again within a few years.

For a personalized rate quote based on your specific situation, use the PSBT mortgage portal or call us at 1.844.PSBT.NOW to speak with a loan officer.

Note: The 0.25% autodraft discount is applied to your quoted rate when you enroll in automatic payment from a PSBT checking account. Rate information on this page is for general reference. Actual rates are subject to change daily and are based on individual qualification.

Should You Refinance?

The most important question before you refinance is whether your long-term interest savings will outweigh the upfront closing costs. Our Should I Refinance? calculator can help you estimate your break-even point and monthly savings based on your current rate, new rate, and expected closing costs.

Once you know your numbers, a PSBT loan officer can walk you through your actual options and help you decide whether now is the right time to move forward.

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Other Ways to Access Your Home Equity

Refinancing is not always the best path for every homeowner. If you want to access your equity or restructure your debt without replacing your first mortgage, PSBT offers a couple of alternatives worth considering.

Peoples Select LOC (HELOC)

The Peoples Select LOC is a home equity line of credit available up to $300,000. It features a 1.99%²,³ introductory APR for the first 6 months, 6.75%^2,4 APR, variable rate thereafter, with automatic payment setup, a 10-year draw period, and up to three fixed-rate lock conversions.

Learn About the Peoples Select LOC

Personal Loan Solutions

For smaller home improvements or debt consolidation needs, a PSBT personal loan can provide a straightforward borrowing option without touching your mortgage.

Explore Personal Loans

How to Apply

Applying for a mortgage refinance with PSBT takes approximately 20 minutes online. Here is what to expect:

Connect with a Loan Officer

Reach out through our contact form, call 1.844.PSBT.NOW, or stop by any of our 40 branch locations across PA, NY, and NJ to start the conversation.

Gather Your Documents

You will typically need recent pay stubs or proof of income, federal tax returns from the past two years, recent bank and asset account statements, your current mortgage statement, proof of homeowner's insurance, and a government-issued photo ID.

Complete Your Application

Your PSBT loan officer will guide you through the application process and help determine which refinancing program fits your situation.

Review and Close

Once your application is approved, you will review the loan terms and close with a PSBT team member. Local decision-making means a faster, more personal process from application to closing.

Questions? Fill out a contact form or call 1.844.PSBT.NOW to talk through your options.

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Mortgage Refinancing Frequently Asked Questions

When does it make sense to refinance your mortgage?

Refinancing typically makes sense when current interest rates are lower than your existing rate, when you want to shorten your loan term to build equity faster, or when you need to access your home equity through a cash-out refinance. A break-even analysis can help determine whether the savings from a lower rate will outweigh your closing costs over your expected time in the home. Our Should I Refinance? calculator is a good place to start.

What is the difference between rate-and-term and cash-out refinancing?

Rate-and-term refinancing replaces your existing mortgage with a new loan at a lower rate, a different term, or both, without significantly changing your loan balance. Cash-out refinancing replaces your mortgage with a larger loan, and the difference is paid to you at closing. Cash-out refinancing is commonly used for home improvements, debt consolidation, or other major expenses.

How much equity do I need to refinance?

Most conventional refinance programs require at least 20% equity to avoid private mortgage insurance. However, programs like Freddie Mac Refi Possible, available through PSBT, are designed for borrowers with less equity who hold an existing Freddie Mac-owned loan. Talk to a PSBT loan officer to review your current equity position and available options.

What documents do I need to refinance my mortgage?

Standard documentation typically includes recent pay stubs, federal tax returns from the past two years, recent bank and asset statements, your current mortgage statement, homeowner's insurance proof, and a government-issued photo ID. Your PSBT loan officer will provide a complete checklist based on your specific loan program.

Does PSBT offer a rate discount on refinancing?

Yes. PSBT offers a 0.25% rate discount for customers who enroll in automatic payment from a PSBT checking account. This is one of the most competitive relationship rate discounts among community banks in the PA, NJ, and NY market.

Can I refinance at any PSBT branch?

Yes. Mortgage refinancing is available throughout PSBT's service territory across Pennsylvania, New Jersey, and New York. You can start a conversation at any of our 40 branch locations, call 1.844.PSBT.NOW, or submit a request online.

What is the Peoples Select MTG refinance program?

The Peoples Select MTG is a streamlined, lower-cost mortgage refinancing option exclusive to PSBT, available for owner-occupied primary residences with refinancing transactions up to $500,000. It is designed to reduce the time and cost of the refinancing process compared to a standard mortgage. Ask a PSBT loan officer whether you qualify.

Does PSBT offer grant funding for refinancing closing costs?

Yes. Through the PSBT Closing Cost Assistance Program, eligible low-to-moderate income borrowers may receive up to $500 toward closing costs on a primary residence refinance. Visit our First-Time Homebuyer page or contact a loan officer to confirm eligibility.

DISCLOSURES

^*Our mortgage loan applications are collected by Finastra, a trusted business partner. By proceeding, you will be directed to Finastra’s mortgage web center.

(1) Peoples Security SelectLOC™ is an interest only or principal & interest monthly, variable rate home equity line of credit which allows up to three fixed rate and payment balance conversion options at any one time during the draw period. Available to borrowers with a 1-4 family owner-occupied primary residence who may borrow up to 80% of their home’s value. The line has a maximum draw period of 10 years with non-converted balances at the end of the period converting to a 20-year variable APR repayment term. Conversion Option: During the draw period, the line allows the borrower selected balances to be locked in for a fixed rate and term. There is a $75 per lock in conversion fee. Payments to the variable line and converted balance portions reducing principal will allow the line of credit availability to increase up to the maximum amount granted. Fees to open this line of credit generally range between $0 and $1,100 in Pennsylvania and $0 and $4,125 in New York and $0 and $1,050 in New Jersey. Homeowners insurance is required. Flood insurance may be required as necessary. APR may not exceed 18.00% (PA) and 16.00% (NY), (NJ) with a minimum rate floor of 3.99%. Maximum loan amount $300,000. (2) All loans subject to credit and collateral approval. This offer is effective 12/11/25 and may be discontinued at any time without notice. (3) The initial Annual Percentage Rate (APR) of 1.99% fixed for a period of six months will apply from date of origination when a minimum $10,000 advance is taken on date of origination. The 1.99% introductory APR only applies to unconverted balances. This introductory rate is offered with autodraft of payment from a Peoples Security Bank checking account. Rate offered without autodraft of payment from a Peoples Security Bank checking account is 2.49% APR. (4) Following the introductory rate period, the Annual Percentage Rate (APR) will vary based upon Prime Rate as published in the Wall Street Journal, currently 6.75%, effective 12/11/25. This rate is offered with autodraft of payment from a Peoples Security Bank checking account. Rate offered without autodraft of payment from a Peoples Security Bank checking account is 7.25% APR.