Brad Huffman, a mortgage adviser with Midwest BankCentre, said homeowners may want to consider refinancing their mortgages as interest rates appear to be going down after rising for several years.
However, he said homeowners should make sure refinancing makes sense for them as it may lower interest rates and payments, shorten their loan term and allow them to use their home’s equity for things like home improvements, college tuition or paying off higher-interest debt.
“A common rule of thumb is that refinancing is worth looking at when you can reduce your interest rate by about half a percent or more,” he said.
Huffman said homeowners should check their credit, gather income and asset documents, have an idea of their home’s current value and understand how a new loan compares to their current loan.
“A good mortgage adviser should be able to show you not just your new payment, but your long-term savings and how the refinance impacts your financial future,” he said.
Huffman said homeowners need to know refinancing is not free due to closing costs. He also said homeowners should avoid resetting their loan to 30 years and not just focus on lowering monthly costs.
Huffman said he may help people decide whether refinancing is right for them. He may be reached by calling his office at 314-633-6029, on his cell phone 618-741-8552 or emailing him at bhuffman@midwestbankcentre.com.
“Refinancing should do more than just save you a few dollars each month,” he said. “It should help you move closer to your bigger financial goals, whether that is becoming debt-free faster, building wealth or creating stability for your family.”
Midwest BankCentre has 16 branches in the St. Louis area, including ones in Arnold, Imperial, Crystal City, De Soto and Fenton. For more information, go to midwestbankcentre.com.