First Bank of the Lake: Mortgage Refinancing: Your Needs Can Change

If you've been paying attention to the housing market lately, you've surely heard the term refinancing thrown around quite a bit. Yes, many have sought to refinance their homes during the COVID-19 pandemic to enjoy the convenience and savings of having a lower mortgage rate. To learn more about the mortgage refinancing process at our bank at the Lake of the Ozarks, keep reading this week's blog. If you have any questions, please give us a call today. First Bank of the Lake can be reached at (573) 348-2265. First Bank of the Lake - Where We Put YOU First.

Looking for a lower rate or a shorter term? No matter what your reasons for refinancing, we can help.

A home refinance can let you save money by lowering your monthly payments or provide you a one-time cash payment during refinancing by tapping into your home’s equity.

Depending on the terms of your current loan and how long you plan to stay in your home, refinancing could be the best option for you. Whether you have an existing loan with us or another lender, we have fixed-and adjustable-rate options that could save you money.

Reasons You Might Think About Refinancing

Lower your monthly payment
Eliminate Private Mortgage Insurance (PMI)
Pay less interest over the life of your loan
Leverage your home’s equity and get cash to use however you want
Consolidate higher-interest debt
Shorten your term and payoff your mortgage faster
Construction Permanent Loans

Tip: Find your break-even point.

To calculate your break-even point based upon monthly payment savings, estimate your savings based on your new monthly payment after the refinance. Then divide the fees and costs of the refinance by your estimated monthly savings.

Here’s an example: Cost to refinance: $1,800

Monthly savings $100 = Break-even point of 18 months

In this case, if you planned on staying in your home for more than 18 months, the cost of refinancing could be worth it. After reaching your break-even point, your savings would:

total $1200 a year.

Bottom line, while reaching your break-even point may take some time, if you’re in it for the long haul, you may be able to achieve some serious savings by refinancing.

Do You Want To Learn More About Refinancing Your Home Loan at the Lake of the Ozarks?

If so, we are here for you! Give us a call today at our phone number listed below and one of our friendly mortgage specialists would be happy to walk you through the process and answer any questions you may have. You can also follow us on our social media platforms listed below to stay up to date on our latest announcements.

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