#1. Interest RatesThis is primarily the first reason to refinance a home and plays a huge role in why NOW is the time to refinance. Just reducing your interest rate by 1% can save you hundreds of dollars a month on your mortgage payment, but it can also save you thousands of dollars over the life of your home loan in interest.
#2. Home EquityAnother reason to refinance your home loan is because you have seen the equity in your home increase. The average equity across mortgaged properties is 32.8%. This number is well above the amount needed to make refinancing a wise money-saving option.
#3. Getting Rid of Private Mortgage Insurance (PMI)PMI can get extremely expensive, and in some cases, it can add over $100 to your monthly mortgage payment. As long as you have at least 20% equity in your home, refinancing can be a quick and easy way to get rid of PMI as well as most likely get a lower rate and save even more money on your monthly payment.
#4. Tackle Home Improvement ProjectsDo you have a home improvement project that you want to get started on or some other large expense you have been delaying? If you have enough equity in your home you could do a cash-out refinance and get the cash you need.
Start by filling out an application on our website. This pre-approval will help get the mortgage process started, whether you are getting a brand new home loan, or you are refinancing a current property. Team Lasson looks forward to assisting you in this new part of your home-owning journey!
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Senior Loan Officer
NMLS #: 493712
4655 B Osage Beach Parkway
Osage Beach, MO 65065
**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.