Monday, March 15, 2021

When is it Beneficial to Refinance?

When is a good time to refinance your home at the Lake of the Ozarks? Well, the answer will vary depending on your current mortgage/home situation. In this week’s blog, your premier mortgage lender at the Lake of the Ozarks, Team Lasson is here to give you a short rundown on when it could be beneficial for you to refinance. Of course, it’s always advised to speak with a mortgage lender in detail when considering any changes to your mortgage. Continue reading to learn more!


Obtaining a Lower Interest Rate

It can be beneficial to refinance your home with a rate-term refinance to obtain a lower interest rate on your mortgage. Going from a higher interest rate to a lower one will allow you to save money and pay less interest on your mortgage.

To Lower or Increase Term of the Mortgage

If you’re looking to save interest paid over the course of your mortgage, refinancing to decrease the amortization/term of the loan will do just that. If you’re having a difficult time making your mortgage payments due to a lack of cash-flow, increasing the term of your loan can be a beneficial move to help lower your monthly payments. Always speak to your mortgage officer to get the pros and cons of making these kinds of moves. Specifically, how it will affect your interest paid, monthly payments, etc.

Going from Adjustable to Fixed Rate

Depending on the future plans you have for your home, switching from an adjustable-rate mortgage to a fixed rate can be a behooving reason to refinance. With a fixed rate, you no longer have to worry about your interest rate increasing after a set amount of time (depending on the market). So, you’ll rest assured your payments won’t make any dramatic increases. However, as mentioned above, your future plans for the home can impact the effect of making this change.

Tap into Equity for Emergency Funds

Another reason to consider refinancing is to tap into equity you’ve built in your home. If you’re in need of debt-consolidation to pay off credit cards, student loans, auto loans, etc. This is one way to do so. It could also be used to come up with emergency funds for an unexpected expense that you couldn’t otherwise afford to pay out of pocket.

As you can see, there are several benefits to refinancing your mortgage at the Lake of the Ozarks, depending on your current situation or future plans. Whether you’re interested in saving interest paid, lowering your mortgage payments, or coming up with emergency funds for unexpected obligations. Refinancing your home can help provide you with solutions for each. If you’re thinking about refinancing your home at the Lake of the Ozarks, I would be happy to discuss any implications, benefits, and precautionary items you need to know. Refinance with confidence with Team Lasson!



Michael Lasson
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.


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