Refinancing in St. Louis, MO
Here a Refinance, There a Refinance, Everywhere a Refinance!
By Tim Whitmire
Mortgage interest rates have come down to near all-time lows and home values have seen strong appreciation over the last few years. As a result, great opportunity exists, RIGHT NOW for many homeowners. Improving my client's financial position through refinancing has been part of what has made me a successful mortgage professional for closing in on 20 years. Here are the top three things to think about when it comes to refinancing your home loan.
Why Should I Refinance?
Depending on your short and long term goals, refinancing can help you lower your monthly payment, remove PMI (private mortgage insurance), reduce the term of your mortgage, build wealth quicker, finance improvements to your home, or consolidate other debt you may have. If you have a $200,000 mortgage and lower your rate by .5% you would save approximately $1,000 in interest the first year. This can be used to increase your cash flow by lowering your monthly payment, or you can apply this $1,000 in savings towards your monthly payments to build equity and pay off your mortgage quicker.
Eliminating PMI can have the same impact. If you’ve owned your home a few years, you’ve paid your mortgage down a bit, in most cases, the value of your home would have increased, and you may have the equity needed to remove/eliminate PMI. Just like lowering your rate, these savings can be used to lower your monthly payment or be applied towards your mortgage each month to pay your home off more quickly.
Financing expensive home improvements can be difficult and saving money for the improvements can be even harder. Refinancing can be an easier and more affordable way to finance home improvements. Our special renovation mortgage program allows you to borrow up to 95% of your “as completed” future value of your home. For example; if the current value of your home is $200,000 and the value of your home after improvements will be $300,000, you can borrow up to $285,000 to finance home improvements.
When Should I Refinance?
You should refinance when the opportunity to save money or accomplish your goals presents itself. A year ago almost everyone believed rates were headed up, instead rates have dropped. This is a special opportunity to refinance and save money that hasn’t existed for a few some time now. If you are considering refinancing solely to save money by lowering your rate or removing PMI it’s important to have enough savings to recoup any closing costs you pay within a few years.
How should I Refinance?
At First Integrity Mortgage Services we offer no-cost mortgage check-ups. To make it happen, all we need is a copy of a recent mortgage statement. This allows us to compare what you currently have vs. what you possibly can take advantage of right now! We analyze your opportunity to save and present to you all of your refinancing options with no obligation or cost involved. We will let you know if it’s worthwhile refinancing or not. We make it very easy and we will only allow you to refinance if there is a true benefit to you!