To Refinance or Not to Refinance, That Is the Question.

You are inundated with advertisements from lenders offering lower rates to prompt you to refinance.   As you look to refinance arguably one of the most valuable financial assets, you must consider many factors into the decision to make sure it is the right decision for your financial situation.

If you are looking to lower your interest rate and your monthly house payment, this is called a rate and term refinance.   You may be able to get a lower rate due to changes in market conditions, having your credit improve, or seeing your property value rise.  A lower interest rate may also allow you to build equity in your house quicker. 

You can also decrease the term of your mortgage.  Shorter term mortgages like 20 year and 15-year term mortgages generally have lower interest rates, although your monthly payments are higher.   You will, however, pay off your loan sooner, reducing your total interest costs over the life of the loan. 

Another reason to refinance is to change the type of loan program.  You may change an adjustable rate mortgage (ARM) to a fixed-rate mortgage in an effort to stabilize your payments for the remainder of your time in the home.  On the other hand, you may know you are going to move with a five to seven year period and may look to the ARM to take advantage of the lower rates on the ARM loans.

Using your home as an asset is also an option.  You may look to take out some of the equity from the house to handle other financial obligations.  This is called a cash-out refinance. 

Cashing out the equity in your home can provide you with some options to handle other financial situations within your family. 

The options are endless:

1 – Renovations – allows you to make improvements to your property or help in the maintenance, put on an addition, redo a kitchen or bathroom

2- Budgeting – allows you to pay off bills which may have accumulated and lower your overall monthly outlay

3- Tuition Cost – allows you to help pay tuition costs and may be cheaper than student loans

4- Debt Consolidation – allows you to help pay higher interest rate debt with a lower rate mortgage payment and improve the household budget

5- Weddings – allows you to pay for the cost of a wedding for a child

6- Liens or collections or judgments – allows you to pay off problem debts from lawsuits, medical issues or other problems

No matter the decision you choose to make regarding refinancing, it is recommended you use a qualified mortgage professional to assist you with your decision.  You will want to share your financial goals with your mortgage professional to provide them the information necessary to properly advise you to meet your financial goals.

Licensed mortgage professionals at First Integrity Mortgage use their experience, expertise, and the special programs available to discover your goals, present multiple relevant options, and recommend the program that best meets YOUR needs!

Call or email David Puzniak NMLS # 559106 to schedule an appointment today at 314-486-2652 or to start the process of refinancing your home!

First Integrity Mortgage Services is a locally owned mortgage banker located at 77 West Port Plaza, Suite 200, St. Louis, MO 63146, NMSL#276593.

Visit us today at and see the difference!!