1. Lower Your Interest Rate
The number one reason people refinance is to get a lower mortgage rate. Depending on when your home was financed, the interest rates have most likely gone down. You could save tens of thousands of dollars just by taking the time to fill out the necessary paperwork and gather the needed documents.
2. Lower Your Monthly Payment
Refinancing your home at the Lake of the Ozarks to a lower interest rate could also drastically decrease your monthly payments. If you're struggling to make ends meet and a couple extra dollars each month could help, now is the time to consider refinancing. Although refinancing to lower your loan payment could increase the term of your loan, it could make sense for your situation.
3. Shorten the Term of Your Loan
If you currently have a 30-year mortgage, now may be a great time to refinance. With record low interest rates, you may find that a 15-year mortgage is not much more expensive than the 30-year loan payments you've been making. Use a mortgage calculator to get an idea of what your payment could be and then contact your Lakelender to see if refinancing is for you!
4. Stabalize Your Interest Rate
With numbers always changing, many people are seeking fixed-rate loans and getting rid of their adjustable-rate mortgages. Everyone is frightened about inflation and they want stability. So if they have an adjustable loan, they want out of it.
5. Put Cash In Your Pocket
Sometimes people need cash and one way to do that is to take a mortgage out on a home that is already paid off. Maybe they want to take a vacation or buy a second home with cash. When they cash out their first home, they have the cash for the second one and don't need a financing contingency, putting them in a better place to bargain. Starting a new business, as well as many other reasons could cause someone to consider taking out a new home loan at the Lake of the Ozarks on a paid-off property.
6. Consolidate Debt
When house prices were rising, many borrowers got cash-out refinances. They refinanced for more than they owed in order to get cash to either spend or invest. This craze stopped when the housing bust began. However, many people are still cashing out to pay off credit cards and consolidate their debt.
7. Buy Other Property
A new refinancing trend is to cash out on your current mortgage to purchse other properties. Often times it's to buy investment property. Borrowers need to understand that this can bring up unexpected tax and mortgage writing issues, so be sure to consult with a financial advisor or tax professional. A lot depends on how the refinanced house and the new property will be used.
8. Family Issues
Divorce often leads to a refinance as a means of removing the former spouse from the note. Other family issues can also lead to a refinance. Sometimes emergencies come up and you need some extra cash. For example, BankRate.com tells a story of a mother who used a cash-out refinance to bail out her son who what facing forclosure on his own house.
With interest rates currently at an all-time low, now is the time perfect time to refinance your mortgage at the Lake of the Ozarks. Despite the sinking rates we're seeing today, a lot of people haven't refinanced. Many homeowners may not even be paying attention to the news and may not know that interest rates have dropped. As your Lakelender, its my job to make you aware of these changes and show you the options you have. Give me a call today at 573-746-7211 to get started!
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Michael Lasson
Sr. Residential Mortgage Lender
NMLS #: 493712
2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049
Direct: (573) 746-7211
Cell: (573) 216-7258
Fax:(573) 693-9141
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