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!
