Popular Reasons to Refinance Your Home

There are many benefits of refinancing your home at Lake of the Ozarks. If you're curious if refinancing is the right financial move for your unique circumstance, it's time to chat with a mortgage lender at Lake of the Ozarks. A professional can help you evaluate the pros and cons of refinancing and the impact it would have on your current mortgage and financial situation. Check out a few of the common reasons people take advantage of a mortgage loan refinance!

Shorten the Terms of Your Mortgage

Paying off your home sooner is much more appealing in certain circumstances. For instance, if you are planning to retire before your mortgage would be paid off, it may be worthwhile to refinance for a shorter term that way you can pay off your home faster. Shortening the terms can actually help you save money in the long run by reducing your interest, as well. 

Take Advantage of the Current Interest Rate

If the current interest rate is lower than the rate at which you purchased your home, you may want to take advantage of the lower rate and refinance your mortgage. Rates are on the rise.

Cash Out 

A cash out refinance is a great way to take advantage of the equity you've built in your home to use toward another purchase or to pay off debt. Whether you're thinking of taking that dream vacation, purchasing a vehicle, or want to pay off debt that's been hanging over your head, a cash out refinance is a solid option. 

Reinvest In Your Home

The current real estate market is tough. If you're tired of waiting out to make an offer on your dream home, consider turning your current space into your dream home. Whether it's adding a bedroom, building on a deck, or adding a retaining wall to expand your parking, refinancing your home to upgrade it may be the way to go. 

As you can see, there are many potential perks of refinancing your home. From more appealing mortgage terms to getting cash out of your investment, there are plenty of reasons homeowners choose to refinance. If you're interested in refinancing your Lake of the Ozarks home, give us a call at (573) 746-7211 or visit our website at www.yourlakeloan.com to get started!

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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.

 

5 Home Refinance Triggers

While most people think about refinancing a home at the Lake of the Ozarks to get a better interest rate, lower their monthly payment or shorten the term of the loan, there are other factors that can trigger the idea of refinancing. Keep reading to learn more about some of these refinance triggers. If you're in any of these situations, talk to your Lake of the Ozarks mortgage lender about your options.

1. Experiencing a Divorce

In the event you and your spouse decide to divorce, and both names are on the mortgage, you'll either need to sell the home or refinance it. In certain situations, where you need to remove a name from the mortgage or title, a home refinance can be an appropriate vehicle to do so. Talk to your lender about the best options for you and your situation.

2. Recovering From a Low Credit Score

Even if interest rates haven't dropped since you first applied for your mortgage, you may still be able to get a better interest rate if your credit score has improved. If your original mortgage rate was based on a low credit score and you've been working to improve that score, you might talk to a mortgage professional at the Lake of the Ozarks about what rates you might qualify for in a refinance. 

3. The Ability to Discontinue Mortgage Insurance

With a low enough LTV (Loan-to-Value), you can refinance your loan to remove the private mortgage insurance that was required at the time you originally obtained the loan. If your home either increased in value or you've paid your loan down enough, a refinance might save you money via a lower interest rate and the absence of the insurance payment. 

4. The Need to Cash Out Some Equity

If you're in need of some cash flow, whether it's for renovations or to pay off other debt, you might consider refinancing your home. Renovating wisely can actually increase the value of your property, which is particularly important if you are considering selling your home in the near future. If you're wanting to consolidate debt, you likely won't find a personal loan with interest rates as low as your home loan rates. Talk to your lender to see if a cash-out refinance is an option for you. 

5. The Desire for Long-Term Savings

If you're planning to stay in your home for a long time, then a home refinance might be a great option for you. With a lower interest rate, you could save more money in the long run. However, if you're planning to sell and move soon, the upfront costs to refinance your mortgage might not be worth the investment. You won't have the home long enough to benefit from the interest savings.

If you're considering Lake of the Ozarks home refinancing, give us a call at 573-746-7211 to discuss your situation. As your mortgage lender at the Lake of the Ozarks, I'm committed to working with you every step of the way. I'll discuss financing 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.

Borrowers Saved Billions in Interest Payments by Refinancing in 2014

In the recent release of Freddie Mac's 4th quarter 2014 quarterly refinance analysis, results showed that borrowers are continuing to take advantage of near record-low mortgage rates to lower their monthly payments. Borrowers are also shortening their loan terms and choosing the safety of long-term fixed-rate mortgages. Over the next 12 months, those borrowers who refinanced in 2014 will save approximately $5 Billion in interest.

Refinancing Trends

The lastest refinance report shows the refinance boom continued to wind down as the pool of potential borrowers declined over the course of 2014. However, due to mortgage rates falling in the 4th quarter of last year, the share of refinance originations slightly increased despite volumes being down. Since mortgage rates have moved even lower, this trend is also expected in the 1st quarter of 2015. Lower mortgage rates, coupled with greater house prices appreciation last year, also brought about a larger share of borrowers cashing out home equity at the time of refinance. However, while the total percentage was up, the total dollar amount declined by nearly $1 Billion from the 3rd quarter of 2014, and nearly $4.6 Billion from the 4th quarter of 2013.

Cash-Out Refinancing

Compared to historical volumes, the net dollars of home equity converted to cash as part of a refinance remained low. An estimated $6.7 Billion in net home equity was cashed out during a refinance of conventional prime-credit home mortgages in the 4th quarter. this is down from a revised $7.6 Billion the previous quarter. For the entire year, an estimated $24 Billion in net home equity was cashed out, down from $28.6 Billion in 2013. The peark in cash-out refinance volume was in the 2nd quarter of 2006 at $84 Billion, with an annual volume of $320.6 Billion. Adjusted for inflation, annual cash-out volumes during 2010 through 2014 have been the smallest since 1997.

Change in Loan Term

During the 4th quarter of 2014, 34% of those refinancing borrowers shortened their loan term. This is down from the 35% from the previous quarter. Further, 35% of those who refinanced outside of HARP took out a shorter-term loan, while 33% of HARP borrowers shortened their term. Of the rest of the borrowers, 60% kept the same term as the loan they had paid off and only 6% chose to lengthen their loan term.

Interest Rate Reduction

The average interest rate reduction was about 1.3 percentage points in the 4th quarter. That is a savings of about 23%. On a $200,000 loan, that translates into saving about $2,500 in interest during the first 12 months. Homeowners who refinanced through HARP during the 4th quarter of 2014 benefited from an average reduction of 1.6 percentage points and will save an average of $3,300 in interest during the first 12 months or about $275 every month. About 71% of those who refinanced their first-lien home mortgage maintained about the same loan amount or lowered their principal balance by paying in additional money at the closing table. That is shy of the 88% peak during the 2nd quarter of 2012.

Fixed-Rate Loans

More than 95% of refinancing borrowers chose a fixed-rate loan. Regardless of what the original loan product was, fixed-rate loans were preferred. For example, 67% of borrowers who had a hybrid ARM refinanced into a fixed-rate loan during the 4th quarter. Only 4% of borrowers who had a fixed-rate loan chose an ARM. For all other (non-HARP) refinances during the 4th quarter, the median property value was up 5% between the dates of placement of the old loan and the new refinance loan. The prior loan had a median age of 5.8 years and 35% of borrowers shortened their loan term.

Interest rates currently remain near historic lows. If you are interseted in refinancing your home at the Lake of the Ozarks, give me a call at 573-746-7211. When it comes to your financing needs, I'm committed to working with you every step of the way. I'll discuss financing 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. 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

6 Reasons You May Want to Refinance

Have you ever thought about refinancing your home at the Lake of the Ozarks? If done correctly, refinancing can save you a lot of money. So how do you know if refinancing is the right option for you? Your Lake of the Ozarks mortgage lender is here to help! Here are 6 reasons you may want to refinance from Credit.com:

1. Lower Your Interest Rate

Generally, if you can lower your interest rate by at least 2%, you should consider refinancing. Since interest rates are currently at a historic low, chances are you can get a much better rate by refinancing now. You could end up saving a lot of money in interest paid over the period of your loan.

2. Switch Loan Type

With many different types of Lake of the Ozarks home loans available, some loan types are better for some people than others. If you currently have an adjustable rate mortgage (ARM), you may want to switch to a fixed rate mortgage (FRM). This allows you to lock in a low rate for a long time. On the other hand, you may be able to reduce your current payments by switching from a FRM to an ARM.

3. Avoid Balloon Payment

Some mortgages have a large payment due at the end of the loan term, usually 5-7 years, called a "balloon payment." Essentially, this type of mortgage is a short-term loan that is setup like a long-term loan for the first few years. You may need to refinance your loan in order 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.

If you have more questions about whether or not refinancing your Lake of the Ozarks mortgage is a good option for you, contact me at 573-746-7211. When it comes to your financing needs, I'm committed to working with you every step of the way. I'll discuss financing 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. 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

8 Reasons to Refinance Your Home

Refinancing your home at the Lake of the Ozarks has its perks.  The first reason that probably comes to your head is to get a lower interest rate. Although this is a great reason to refinance, there are many other reasons to consider a new home loan.  As your Lake of the Ozarks mortgage lender, I'm here to help you consider all your options.  

1. Lower Your Interest Rate

The number one reason people refinance is to get a lower mortgage rate.  Depending on when your home was financed, the interest rates have most likely gone down.  You could save tens of thousands of dollars just by taking the time to fill out the necessary paperwork and gather the needed documents.

2. Lower Your Monthly Payment

Refinancing your home at the Lake of the Ozarks to a lower interest rate could also drastically decrease your monthly payments.  If you're struggling to make ends meet and a couple extra dollars each month could help, now is the time to consider refinancing.  Although refinancing to lower your loan payment could increase the term of your loan, it could make sense for your situation.

3. Shorten the Term of Your Loan

If you currently have a 30-year mortgage, now may be a great time to refinance.  With record low interest rates, you may find that a 15-year mortgage is not much more expensive than the 30-year loan payments you've been making.  Use a mortgage calculator to get an idea of what your payment could be and then contact your Lakelender to see if refinancing is for you!    

4. Stabalize Your Interest Rate

With numbers always changing, many people are seeking fixed-rate loans and getting rid of their adjustable-rate mortgages. Everyone is frightened about inflation and they want stability.  So if they have an adjustable loan, they want out of it.

5. Put Cash In Your Pocket

Sometimes people need cash and one way to do that is to take a mortgage out on a home that is already paid off. Maybe they want to take a vacation or buy a second home with cash.  When they cash out their first home, they have the cash for the second one and don't need a financing contingency, putting them in a better place to bargain. Starting a new business, as well as many other reasons could cause someone to consider taking out a new home loan at the Lake of the Ozarks on a paid-off property.

6. Consolidate Debt

When house prices were rising, many borrowers got cash-out refinances.  They refinanced for more than they owed in order to get cash to either spend or invest.  This craze stopped when the housing bust began. However, many people are still cashing out to pay off credit cards and consolidate their debt.

7. Buy Other Property

A new refinancing trend is to cash out on your current mortgage to purchse other properties. Often times it's to buy investment property. Borrowers need to understand that this can bring up unexpected tax and mortgage writing issues, so be sure to consult with a financial advisor or tax professional.  A lot depends on how the refinanced house and the new property will be used.

8. Family Issues

Divorce often leads to a refinance as a means of removing the former spouse from the note. Other family issues can also lead to a refinance.  Sometimes emergencies come up and you need some extra cash.  For example, BankRate.com tells a story of a mother who used a cash-out refinance to bail out her son who what facing forclosure on his own house.

With interest rates currently at an all-time low, now is the time perfect time to refinance your mortgage at the Lake of the Ozarks.  Despite the sinking rates we're seeing today, a lot of people haven't refinanced.  Many homeowners may not even be paying attention to the news and may not know that interest rates have dropped.  As your Lakelender, its my job to make you aware of these changes and show you the options you have.  Give me a call today at 573-746-7211 to get started!

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