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Thinking of Refinancing Your Mortgage? 6 Ways to Know You’re Ready

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If you are considering refinancing your mortgage, now may be the perfect time. Rates are at an all-time low, which is one of many great reasons to refinance your mortgage. This not only allows you to take advantage of substantial savings on your home loan, but also to put yourself in a better financial position in the future. But is now the right time for you to refinance?

While many homeowners can benefit from a mortgage refinance, for some it may not be the right situation. Savvy homeowners know that there are some things to consider when thinking about refinancing a Midwest home mortgage – such as the fees and closing costs versus the actual savings, your lifestyle, and especially your budget.

Here are some tips from the professionals at Mid America Mortgage so you can properly access your home mortgage and see if now is the perfect time to consider a mortgage refinance.

Top 6 Reasons to Refinance Your Mortgage

  1. Higher Interest Rate Than Current Rates – The most popular reason to refinance a mortgage is to get a better interest rate. That’s a no brainer for sure! It saves you money and makes your mortgage more affordable.
  2. Get Out of Debt – A cash-out refinance allows a homeowner to use the equity in the home to borrow money. This extra money can be used to upgrade or repair the home or to pay for expenses like credit card debt, education, or medical fees when needed.
  3. Get Rid of Costly PMI – Since home prices are on the rise, there is a good chance the value of your home has increased. The extra gained equity allows those who are required to have private mortgage insurance (PMI) by their FHA loan can drop this costly expense once you have 20% equity in the home – saving you hundreds each month.
  4. FHA Loan – Those with an FHA loan can refinance and get a conventional mortgage, which does not require mortgage insurance and typically offers lower rates.
  5. Increase in Credit Score – If your credit score has recently improved, refinancing can often fetch a better interest rate which can save you thousands of dollars in loan costs over the years.
  6. Increase in Home Value – When the value of your home has risen significantly, there are always benefits to refinancing when rates are low. It is always good to have extra money put aside, and this gives you an excellent opportunity to take advantage of this situation.  

Types of Mortgage Refinance Programs

  • Rate-and-Term Refinance – One of the most popular reasons to refinance your mortgage is to get a better rate and/or loan term. Lowering your interest rate can decrease monthly payments while lowering your loan term to 15 years versus 30 can save thousands in interest charges.
  • Cash Out Refinance – When you do a cash out refinance, you are able to liquidate some of your home’s equity. This allows you to get your hands on some extra cash and finance a new loan that includes the balance of your previous mortgage balance and the cash you withdrew.
  • Home Equity Loans – Home equity loans are popular for those who have built substantial equity in their homes. This type of refi is a good idea if funds are used to make improvements on your home or you use the money to consolidate debt at a better interest rate.
  • Streamline Refinance – The Federal Housing Authority offers the Streamline Refinance program that allows borrowers to quickly refinance an existing FHA loan with a lower rate. The perk of this program is that it lets homeowners avoid the mounds of paperwork often involved with a loan or refinance and also is usually done without an appraisal – saving time and money.

Is Now the Right Time to Refinance Your Mortgage?

Refinancing the mortgage on your home can make sound financial sense. If you are considering a mortgage at this time, the team at Mid America Mortgage is here for you.

From explaining the different types of mortgage refinance programs to helping you get the best rates – our experienced team of mortgage professionals can help you make the best decision for your situation.

Contact us today to get the mortgage refinance advice you can count on. You can call Mid America Mortgage at 573-875-1100! 

"I’m a very loyal customer at Mid America Mortgage Services, Inc. I have an addiction to building houses and designing them, and they are always right there with me every step of the way helping me get the best loan product and the best rates whenever I am ready to build. They make sure you don’t get a loan that you can’t afford. The whole process was very smooth. I would recommend Mid America Mortgage Services, Inc to anyone because they are always there to teach you, help you, and make it easy for you every step of the way."

Kate

"They really explained the process to us very well and made us feel very comfortable, specifically Jeanie Byland. I have never asked a question that I felt dumb about. They really wanted to educate us and have been fantastic. The interest rates changed one day and they called me to say, ‘Hey we might ought to look into refinancing your loan’. I really felt like they had our best interest at heart."

Steve

"I knew Jeanie Byland for a long time. She made the process so easy. One of the things I probably appreciated the most was that she didn't want to spoil the excitement of closing on a new house by showing up on closing day finding out that we owe a lot more than we thought. They were upfront with that information right from the get-go, and that’s because it’s just like they say, ‘They wouldn’t put you in a loan that they would be comfortable taking themselves.’”

Jamie

"When we were 18 and 19 years old no one wanted to help us get started. But Michelle took us under her wing 6 years ago next month. There is a lot of people out there that could of taken advantage of us many of times because we had no idea what was going on. For Michelle to stand beside us and walk us through, and not let us get into something that could get us in a lot of trouble means the world. We thank Michelle and we are extremely blessed to be able to work with her and her team. I have never even thought about talking to another lender and will always be loyal to Mid America Mortgage Services, Inc."

Cody and Morgan

"One of the main things that I loved about Michelle was she was so organized. She would meet us at any location she needed to, and to be honest she had the absolute lowest interest rate. They were always very transparent with fees so there were no surprises. Michelle was always super easy and we would always run in talk to her even it was for a few minutes. The best thing was the process was very, very smooth."

Chris and Jamie

Selling our home of 17 years and building a new home was a very emotional time for our family. We were ready for the next adventure in our lives but knew there were numerous steps involved. The search for a mortgage officer was simple, Michelle was our choice. Her guidance and knowledge made the process as easy as possible. When we had questions, she was always there to give us an answer and discuss our options. The employees of Mid America Mortgage Services, Inc like Michelle will keep us returning for our mortgage needs.

Chad and Julee

Michelle, I want to thank you for all of your efforts on the loan. I never knew how much information the needed! I appreciate your personal nature and ease of working together. Thank you for making this happen! :)

Amy

"My family owns Tiger Ice Company. My experience with Ralph at Mid America started with Tiger Ice because we needed to expand our facility. When we went in to talk to Ralph at Mid America, he pretty much was straight up with us and told us we needed to go back to the drawing board. We came back with new numbers and a new plan, and we built the facility and everything was fine. Our dream of that would not have been possible at all without Mid America Mortgage Services, Inc and Ralph. They don’t tell you what you want to hear, they tell you the truth and that's what we weren't getting from other banks."

Andy

"My wife and I have moved around quite a bit with my job so we have been through the process before, but we have never had anybody help us as much as Michelle West Mid America Mortgage Services, Inc did. We needed a loan for a new construction home and they were able to help us out with all of our needs and make us feel comfortable with what we were doing moving forward. They did a good job of walking us through the paperwork to make sure that we were pre-approved for a certain amount."

Jason

"I have had mortgages since 2004 in Columbia and have gone through a couple of banks, but over the last several years, the last couple of houses have been with Mid America Mortgage Services, Inc. Michelle has told us many times, 'I am not going to put you in a situation I am not comfortable with you being in, regardless of what it means for our company'.

Heidi always has a smile on her face and when you walk through the door, they recognize you and say “Hi”. I definitely recommend anyone who is in the home buying, purchasing, refinancing, upgrading business to go to Mid America Mortgage Services, Inc, ask for Michelle because they are going to be the best person you can work with."

John


Phone: (573) 875-1100
200 E Walnut St, Columbia, MO 65203