6 Reasons to Refinance in 2020

When done correctly, refinancing can save you a lot of money and could be the best financial step for you to take. Have you ever considered refinancing your home? If you have not considered it, 2020 may just be the year that you need to think about it, and see if it is the right option for you! Your Lake of the Ozarks mortgage lender is here to help, so we have 6 reasons why refinancing may be the best step for you.

#1. It Can Lower Your Interest Rate

Did you know that if you can lower your interest rate by at least 1% (or 0.5% on higher loan amounts), you should consider refinancing? Interest rates are incredibly low right now, and the chances that you can get a better rate by refinancing now are much better than in previous years. This is a huge asset because you could end up saving a lot of money in interest paid throughout your loan.

#2. Switch Your Loan Type

There are many different loan types available for homes, some are better for certain people than others. If you currently have an adjustable-rate mortgage (ARM), you may want to switch to a fixed-rate mortgage (FRM). This can allow you to lock in a low rate for a long time! It might also be feasible to drop from a 30-year mortgage to a 20 or 15 year. With the lower rates, you could have close to the same payment you currently have but shorten the term of the loan. This is something you can discuss with your mortgage lender at the Lake of the Ozarks!

#3. Be Aware of Balloon Payments

Some mortgages have a large payment due at the end of the loan term - usually, 5-7 years, called a “balloon payment.” This type of mortgage is a short-term loan that is set up like a long-term loan for the first few years. You may need to refinance your loan to avoid paying this large expense.

#4. Stop Paying Private Mortgage Insurance

When more than 80% of the home's sale price is borrowed, sometimes the borrower is required to purchase private mortgage insurance (PMI). If the home's value has increased, you can use this amount to refinance and stop paying that PMI.

#5. Cash Out Home Equity

Home equity is often used as a way to finance a remodeling project, college tuition, car purchase or a vacation. If your home's value has increased, you can refinance to cash out that extra amount. You would actually be refinancing your mortgage for more than you currently owe on it and then pocketing the difference.

#6. Consolidate Debts

If you have a lot of high-interest debts, you may be able to save money by consolidating those debts into a mortgage. Auto loans, credit cards, second mortgages, and other debts can all be included in your refinance.

Do you have more questions about refinancing a Lake of the Ozarks home? Team Lasson would be glad to answer your questions! You can start by filling out an application on our website (www.YourLakeLoan.com) so that we have an idea of your financial position. We look forward to helping you decide if refinancing is the right choice for you!

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

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Reasons to Refinance

We’ve been covering the benefits of getting a home loan at the Lake of the Ozarks right now because rates are near a three-year low! However, refinancing your current home can be just as important as getting a new loan when you see that the rates are low. Team Lasson can help you with a refinance loan anywhere in the United States. Here are a few reasons to refinance right now while the interest rates are doing so well.

#1. Interest Rates

This 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 Equity

Another 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 Projects

Do 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.

Refinancing a Home at the Lake of the Ozarks

There are so many reasons to consider refinancing your home, but you don’t need to become overwhelmed by it. If you have considered refinancing your home, start the process with us! We can help you evaluate the details, the benefits, or even the disadvantages if there are any. You can visit our website (www.YourLakeLoan.com) to start the refinancing process.

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!

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

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Refinancing Your Home at the Lake of the Ozarks

Buying a brand new home isn't the only reason you would need a home loan at the Lake of the Ozarks. Today's blog from your Lake of the Ozarks mortgage lender discusses how refinancing your home works. Keep reading to find out if refinancing may be right for you.

What is Home Refinancing? 

Refinancing is when you get a new mortgage to replace the original one you had on your home. This is done in an effort to reduce the monthly payment amount, lower the interest rate or take cash out for larger purchases. In today's economic conditions, it can be difficult for some to make the monthly payments on their mortgage. Should you find yourself in a situation where you're struggling to make your mortgage payments each month, refinancing is something to consider.

How Does Refinancing Work? 

When refinancing a home at the Lake of the Ozarks, the first loan is actually paid off, allowing the second loan to be created. Therefore, there will be costs associated with creating a new loan. It's important to make sure that the benefits of refinancing will outweigh the associated costs. You will need to consider all of the closing costs, such as application fee, title insurance and title search fees, attorney review fees and points and fees incurred in loan origination. Run the numbers and see if refinancing makes sense for you. Talking to a mortgage professional at the Lake of the Ozarks and discussing your options will also help.

Advantages of Refinancing 

There are a variety of advantages to refinancing your home. The main advantage is being able to reduce your interest rate. Whether interest rates have dropped since you first got your mortgage or your credit score has improved allowing you to qualify for a better interest rate, refinancing might be a great option for you. A lower interest rate can have a huge impact on your monthly payments, potentially saving you hundreds of dollars each year. This brings us to the next advantage, the ability to reduce your monthly mortgage payment. Whether you took a pay decrease or just want to be able to set money aside in savings, a reduction in your monthly mortgage payment by refinancing could be a great solution.

If you're considering a Lake of the Ozarks home refinance, give Michael Lasson a call at 573-746-7211. As your mortgage lender at the Lake of the Ozarks, I'm committed to working with you every step of the way, from deciding if refinancing is right for you to closing the loan. I'll discuss your options, offer competitive interest rates and back it up with the first-class service you deserve!

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

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(866) 397-0318

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.