In the event you and your spouse decide to divorce, and both names are on the mortgage, you'll either need to sell the home or refinance it. In certain situations, where you need to remove a name from the mortgage or title, a home refinance can be an appropriate vehicle to do so. Talk to your lender about the best options for you and your situation.
2. Recovering From a Low Credit Score
Even if interest rates haven't dropped since you first applied for your mortgage, you may still be able to get a better interest rate if your credit score has improved. If your original mortgage rate was based on a low credit score and you've been working to improve that score, you might talk to a mortgage professional at the Lake of the Ozarks about what rates you might qualify for in a refinance.
3. The Ability to Discontinue Mortgage Insurance
With a low enough LTV (Loan-to-Value), you can refinance your loan to remove the private mortgage insurance that was required at the time you originally obtained the loan. If your home either increased in value or you've paid your loan down enough, a refinance might save you money via a lower interest rate and the absence of the insurance payment.
If you're in need of some cash flow, whether it's for renovations or to pay off other debt, you might consider refinancing your home. Renovating wisely can actually increase the value of your property, which is particularly important if you are considering selling your home in the near future. If you're wanting to consolidate debt, you likely won't find a personal loan with interest rates as low as your home loan rates. Talk to your lender to see if a cash-out refinance is an option for you.
5. The Desire for Long-Term Savings
If you're planning to stay in your home for a long time, then a home refinance might be a great option for you. With a lower interest rate, you could save more money in the long run. However, if you're planning to sell and move soon, the upfront costs to refinance your mortgage might not be worth the investment. You won't have the home long enough to benefit from the interest savings.
If you're considering Lake of the Ozarks home refinancing, give us a call at 573-746-7211 to discuss your situation. As your mortgage lender at the Lake of the Ozarks, I'm committed to working with you every step of the way. I'll discuss financing options, offer competitive interest rates and back it up with the first class service you deserve!
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Senior Loan Officer
NMLS #: 493712
4655 B Osage Beach Parkway
Osage Beach, MO 65065
Cell: (573) 216-7258
**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.