Thursday, July 25, 2019

Reasons to Refinance

As your Lake of the Ozarks Mortgage company, we see many different people with many different real estate goals., such as purchasing a vacation home or primary residence at the Lake of the Ozarks, a recreational property (for hunting, or ATV riding), and even a simple refinance. You may not have considered refinancing your home, but there can be many beneficial reasons to do this. If you are even slightly considering this step, keep reading! Now is a great time to buy a new property or refinance the one you already own.

You Could Get a Better Interest Rate & Payment

One of the biggest reasons to refinance is to secure a lower interest rate and save money on your monthly mortgage payment, as well as the total amount of interest paid over the time of the loan. Because this is generally the most popular reason for refinancing, it’s not hard to focus on the rates and fees without realizing that you can sometimes save more by structuring your loan properly and creating a plan to determine when to lock, at what rate, and for how long. Do you have questions about this? We would be glad to answer those questions and discuss your options!

Reduce or Shorten PMI

It’s been over six years since the Federal Housing Administration (FHA) changed the way it required mortgage insurance for the life of the loan if you put less than 20 percent down. If you refinance to a lower rate and shorten the loan by a few years to a 15-20 year refinance, you may be able to get rid of your private mortgage insurance!

Cash Out

If you can reduce the interest rate on your mortgage, and still take cash out of your home to pay off bills or make home improvements, then a cash-out refinance may make sense for you. This usually involves refinancing your mortgage for a larger sum than what you currently owe and using the equity in your house as collateral. It’s worth looking into, because you may be able to qualify for up to 80 percent of the home’s value.

The money from the cash-out can be used to pay off high-interest debt or making home improvements to further invest in your home!

Reduce Loan Term

If a loan has a shorter term, it can often have a better interest rate. This means that shortening the term of the loan can significantly decrease the amount paid over the life of the loan. With rates being so low today, you could possibly refinance into a 15 year term and have the same monthly payment you had on your 30 year mortgage.

Buy-Out Other Owners

One of the most common situations that we see this happen in is when there are multiple owners on a property. In the event of a divorce, one spouse must refinance the other off the existing loan if they keep the home. But this can also happen if you own a home with a friend, relative, significant other, or a business partner.

Ready to Refinance?

If you think that refinancing your home at the Lake of the Ozarks would be the best choice for you, let’s talk. Visit our website to learn more about our mortgage company at the Lake of the Ozarks (, or submit an application to get started. We would be glad to assist you through this process. Now is a great time to get your home refinanced, or to buy a new home. The Fed is about to cut rates at the end of the month, and that does not guarantee home loan rates will move lower. In many cases, home loan rates ticked up a bit. Need to talk to mortgage professionals? Team Lasson is here to help!

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

Michael Lasson
Senior Loan Officer
NMLS #: 493712

4655 B Osage Beach Parkway
Osage Beach, MO 65065

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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