Your Lake of the Ozarks Mortgage Lender: 6 Tips for Refinancing Your Home at the Lake of the Ozarks

Thursday, September 14, 2017

6 Tips for Refinancing Your Home at the Lake of the Ozarks

Refinancing a home has a variety of benefits. Whether you're looking to lower your monthly payment, get a better interest rate or tap into some of your home equity, refinancing is an option to consider. Here are a few tips for refinancing your home at the Lake of the Ozarks:

1. Stop Procrastinating: Make the Decision to Refinance Today.

If you purchased your home awhile ago, chances are you're paying a higher interest rate than necessary. Interest rates recently hit historical lows and are now climbing their way back up. If you want to refinance, now's the time to do it! Once those rates start going up, homeowners are likely to regret missing the opportunity to take advantage of appealing rates.

2. Ensure Your Credit is Good.

Refinancing your home is similar to applying for a home loan in that your credit history plays a large role. If you have struggled with your credit rating in the past, refinancing may not be the best option for you. Consult your Lake of the Ozarks mortgage lender to review your credit history and determine what interest rates will be available to you. Together you can decide if refinancing will help you save money.

3. Debate If Paying Points Makes Sense.

While paying points isn't always the best option, it's something that should be considered. Paying points is where you pay some money upfront to permanently lower your interest rate. Be sure to run the numbers to ensure the amount your saving in the long run justifies spending the money upfront for those points.

4. Consider Switching from an Adjustable to Fixed Rate.

If you currently have an adjustable-rate mortgage and are worried about rising interest rates, now might be the time to refinance to a fixed-rate mortgage. With a fixed-rate mortgage you can lock in a new rate, making your monthly payments more predictable.

5. Beware of Taking Cash Out.

When refinancing your home, it can be tempting to do a cash-out refinance to pay for that car or that vacation you've been wanting. While cash is nice, you're setting yourself up with a bigger mortgage and less equity. You will want to consider carefully if it is worth taking the cash; often, it is not.

6. Ignore the 1% Rule.

Maybe you've heard the rule that you shouldn't refinance unless you can get at least 1% less on your interest rate. However, that's not always true. In some instances though, a rate reduction of just a quarter of a percent can provide benefits and savings. Run the numbers yourself to determine if a refinance is the right decision for you.

If you're considering a home refinance, call 573-746-7211 to discuss your options. As your mortgage lender at the Lake of the Ozarks, I'll work with you every step of the way. I'll offer competitive interest rates and back it up with the first-class service you deserve.

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