Missouri (MO) Mortgage & Refinance Information
Refinancing a mortgage in Missouri can offer homeowners a chance to lower their interest rates and save thousands of dollars during the life of their loans. If current loan rates are lower now than they were when they purchased their homes, borrowers can refinance their loans at the lower rates to save money. Even though there may be expenses involved with refinancing, the savings gained over the years will more than offset those costs.
Get Extra Cash by Refinancing
When borrowers have considerable equity built up in a home and need money for other purposes, refinancing may be a good option to get those needed funds. There has probably been an increase in their home’s value since they purchased it, and that added value along with the equity gained can amount to a substantial sum. When the homeowners refinance their loan at the home’s current value, they can use the additional money to pay off credit cards and other loans with higher interest rates. They can use interest on home loans as a tax deduction, while most other loan interest does not qualify, so consolidating those other loans into the mortgage can save money at tax time as well.
Lower Interest / Lower Payments
Banks and mortgage companies are offering some good deals for mortgage refinancing, and borrowers who have had their current loan for more than two years may benefit from those great refinance mortgage rates in Missouri.
A lending company will work with the homeowners to tailor a loan that will meet their needs. The goal may be a lower interest rate that will save money over the years, and when 30 year refinance rates are at their lowest, it is a good time to lock in a great rate. However, if the homeowners are experiencing financial difficulties and need lower payments for a short time, an adjustable-rate mortgage (ARM) can accomplish that objective. The ARM would allow for low payments for a specific time and then change to a variable rate that could go up or down according to the economy.
Mortgage Refinancing Options
A homeowner has a wide range of options for refinancing, from a 3-year Adjustable Rate Mortgage (ARM) to a 30-year fixed rate, with a variety of choices between those examples. FHA loans are available in Missouri, with limits that vary based partially on the location of the home. Some lenders offer no cost loans where their company pays any associated closing costs. However, those loans usually have a higher interest rate and higher monthly payment.
Borrowers will gain the most benefit from comparing refinancing rates and terms, understanding all the conditions and deciding which option best fits their needs before signing the loan papers.
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