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!

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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.

Why NOW is the Time to Refinance Your Home

If you've been thinking about refinancing your home, now is the time to do it. Whether you're looking for a better rate or you want to shorten the length of your loan, refinancing now might be the right move. In today's blog, your Lake of the Ozarks mortgage lender discusses why NOW is the time to refinance your home at the Lake of the Ozarks.

Low Interest Rates

Interest rates currently remain in historically low territory. Consumer inflation has remained tame over the past few months, and tame inflation tends to be good news for Lake of the Ozarks home loan rates since they are tied to mortgage bonds. Inflation is also one of the many economic factors the Federal Open Market Committee (FOMC) considers when setting monetary policy. July's meeting notes didn't provide a clear signal regarding when the Fed may next change the Fed Funds Rate. This is the rate banks use to lend money to one another overnight. The September meeting provides the next opportunity for the Fed to consider an adjustment. An increase in the Fed Funds Rate could negatively affect home loan rates, so this is something to keep an eye on. One of the main reasons people choose to refinance their home is to get a better rate. With the possibility of an increased Fed Funds Rate, now is the time to talk to the best mortgage lender at the Lake of the Ozarks about refinancing your home before interest rates start rising.  

Changing Loan Terms

Historically low interest rates have enticed more homeowners to refinance in order to shorten their loan term. Depending on the rate you had before and what you can secure now, homeowners could possibly cut the loan term in half without a huge jump in monthly payments. In addition to the term length, you need to consider other factors affecting your loan. Do you have an adjustable-rate mortgage? If so, you may want to consider refinancing to a fixed rate, as interest rates could start rising in the near future. They've remained at historic lows for a while now, and there's no telling exactly what the Fed Funds Rate will do and how mortgage rates could be affected in the near future.

Refinancing may not be the right move for everyone, and talking to a mortgage professional is the first step. When it comes to your Lake of the Ozarks home financing needs, Lakelender Lasson is committed to working with you every step of the way. 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

Sr. Loan Officer

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

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.

3 Things to Consider Before Refinancing Your Home

Have you considered refinancing your home? While it can be a great option for some people, it may not be the right choice for everyone. Here are a few things you'll want to consider before deciding if refinancing at the Lake of the Ozarks is the right move for you.

1. Reason for Refinancing

The main reason people choose to refinance their homes is to get a better deal. This could be in the form of a lower interest rate, lower monthly payments, or a shorter/longer loan period. You'll need to consider your personal reasons for wanting to refinance. Maybe it's to free up some cash to pay off higher interest loans such as a car payment. What goals do you want to accomplish through the refinancing process? Be sure to examine the pros and cons of refinancing your home before taking any action. You need to see if your timing and circumstances are right for refinancing. If your credit score has improved or your income has changed, you might be ready for a refinance.

2. Current Interest Rates

Interest rates are one of the main factors determining the cost of your mortgage at the Lake of the Ozarks. On average, a borrower that refinances their home reduces their interest rate by about 1.5 percentage points. That may not sound like much, but over the life of the loan it adds up. Keep in mind that published interest rates are only a guideline, as interest rates differ for each borrowers individual situation. Your credit score and intended loan type will influence the rate available to you.

3. Costs and Penalties Involved

Be careful that penalties don't eat up all that you're saving with your refinance. Some financial institutions charge hefty fees for paying off your loan early. These fees can make it unfeasible to refinance your home at the Lake of the Ozarks. Refinanced loans often incur "moving costs" such as legal fees, disbursement costs, new valuation costs and stamp duty. Make sure to check the numbers to see if you're actually saving money before you decide to go through with the refinance. You want your long-term savings with lower payments to outweigh the immediate costs of refinancing.

For all of your Lake of the Ozarks home financing needs, give me a call at 573-746-7211. I'm committed to working with you every step of they way. As your Lake of the Ozarks mortgage lender, I'll discuss the best options for your unique situation, 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

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

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.