Friday, February 5, 2016

3 Things to Consider Before Refinancing Your Home

Have you considered refinancing your home? While it can be a great option for some people, it may not be the right choice for everyone. Here are a few things you'll want to consider before deciding if refinancing at the Lake of the Ozarks is the right move for you.

1. Reason for Refinancing

The main reason people choose to refinance their homes is to get a better deal. This could be in the form of a lower interest rate, lower monthly payments, or a shorter/longer loan period. You'll need to consider your personal reasons for wanting to refinance. Maybe it's to free up some cash to pay off higher interest loans such as a car payment. What goals do you want to accomplish through the refinancing process? Be sure to examine the pros and cons of refinancing your home before taking any action. You need to see if your timing and circumstances are right for refinancing. If your credit score has improved or your income has changed, you might be ready for a refinance.

2. Current Interest Rates

Interest rates are one of the main factors determining the cost of your mortgage at the Lake of the Ozarks. On average, a borrower that refinances their home reduces their interest rate by about 1.5 percentage points. That may not sound like much, but over the life of the loan it adds up. Keep in mind that published interest rates are only a guideline, as interest rates differ for each borrowers individual situation. Your credit score and intended loan type will influence the rate available to you.

3. Costs and Penalties Involved

Be careful that penalties don't eat up all that you're saving with your refinance. Some financial institutions charge hefty fees for paying off your loan early. These fees can make it unfeasible to refinance your home at the Lake of the Ozarks. Refinanced loans often incur "moving costs" such as legal fees, disbursement costs, new valuation costs and stamp duty. Make sure to check the numbers to see if you're actually saving money before you decide to go through with the refinance. You want your long-term savings with lower payments to outweigh the immediate costs of refinancing.

For all of your Lake of the Ozarks home financing needs, give me a call at 573-746-7211. I'm committed to working with you every step of they way. As your Lake of the Ozarks mortgage lender, I'll discuss the best options for your unique situation, offer competitive interest rates and back it up with the first class service you deserve.

For Lake area news, resources and tips on financial services, please 

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


**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

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