Your Lake of the Ozarks Mortgage Lender: Lake of the home refinancing

Monday, July 12, 2021

Reasons to Refinance in 2021

Refinancing your home at the Lake of the Ozarks can be beneficial for reducing the length of the loan, lowering your monthly payment, or improving your rate terms. When done correctly, refinancing can save you a lot of money and could be the best financial step for you to take. If you have ever considered refinancing your home, then 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 the entire term of the loan instead of just a few years! 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 that typically have a higher interest rate can all be included in your refinance.

Photo Credit: Fun Lake

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!

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.

Thursday, September 14, 2017

6 Tips for Refinancing Your Home at the Lake of the Ozarks

Refinancing a home has a variety of benefits. Whether you're looking to lower your monthly payment, get a better interest rate or tap into some of your home equity, refinancing is an option to consider. Here are a few tips for refinancing your home at the Lake of the Ozarks:

1. Stop Procrastinating: Make the Decision to Refinance Today.

If you purchased your home awhile ago, chances are you're paying a higher interest rate than necessary. Interest rates recently hit historical lows and are now climbing their way back up. If you want to refinance, now's the time to do it! Once those rates start going up, homeowners are likely to regret missing the opportunity to take advantage of appealing rates.

2. Ensure Your Credit is Good.

Refinancing your home is similar to applying for a home loan in that your credit history plays a large role. If you have struggled with your credit rating in the past, refinancing may not be the best option for you. Consult your Lake of the Ozarks mortgage lender to review your credit history and determine what interest rates will be available to you. Together you can decide if refinancing will help you save money.

3. Debate If Paying Points Makes Sense.

While paying points isn't always the best option, it's something that should be considered. Paying points is where you pay some money upfront to permanently lower your interest rate. Be sure to run the numbers to ensure the amount your saving in the long run justifies spending the money upfront for those points.

4. Consider Switching from an Adjustable to Fixed Rate.

If you currently have an adjustable-rate mortgage and are worried about rising interest rates, now might be the time to refinance to a fixed-rate mortgage. With a fixed-rate mortgage you can lock in a new rate, making your monthly payments more predictable.

5. Beware of Taking Cash Out.

When refinancing your home, it can be tempting to do a cash-out refinance to pay for that car or that vacation you've been wanting. While cash is nice, you're setting yourself up with a bigger mortgage and less equity. You will want to consider carefully if it is worth taking the cash; often, it is not.

6. Ignore the 1% Rule.

Maybe you've heard the rule that you shouldn't refinance unless you can get at least 1% less on your interest rate. However, that's not always true. In some instances though, a rate reduction of just a quarter of a percent can provide benefits and savings. Run the numbers yourself to determine if a refinance is the right decision for you.

If you're considering a home refinance, call 573-746-7211 to discuss your options. As your mortgage lender at the Lake of the Ozarks, I'll work with you every step of the way. I'll 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