HomeMortgageHome Loan OptionsRefinancing

Refinancing

Financial needs shift over time. Take advantage of our refinancing mortgage options to help manage life’s changes with confidence.

Refinancing your mortgage at First State Bank of St. Charles can pay off in so many ways.

Working with some of the best mortgage lenders for refinancing, you’ll have the opportunity to:

  • Lower your monthly payments
  • Reduce your interest rate
  • Shorten your loan term
  • Access equity for other financial goals

Frequently Asked Questions

A few common questions, answered.

Your balance is the amount of the remaining principal owed. Your payoff amount is the balance plus prorated interest from the last payment received until the loan is actually paid off.
Whether you’ll need to pay funds at closing on a refinance mortgage depends on your situation. No cash is needed for:
  • No-cost refinance: You can roll closing costs into your loan, so no upfront cash is required.
  • Cash-out refinance: You’ll receive money at closing as you borrow more than your current mortgage.
May need cash for:
  • Paying down the loan: If you choose to pay down the loan, you may need to bring cash.
  • Escrow setup: If you need to fund a new escrow account for taxes and insurance.
  • Before closing, we will provide a Closing Disclosure (CD) with exact details on any funds needed.
Sometimes, you will need a new appraisal when you refinance your mortgage. A current appraisal helps determine the home’s market value, which allows us to assess how much we can lend and whether the loan meets our underwriting requirements. However, there are some exceptions:
  • Streamline Refinancing Programs: Some government-backed loans (such as FHA, VA, or USDA) offer streamlined refinancing options that may not require a new appraisal.
  • Appraisal Waivers: In some cases, lenders may offer an appraisal waiver, especially if minimal time has passed since the original appraisal or the home has a solid loan-to-value ratio based on automated valuation models.
It’s good to talk with your loan officer to see if you qualify for any of these exceptions.
While it may seem that way since your first regular payment is usually not due until the second month after closing, the reality is that although you do get a break on paying principal for the closing month, between the old and new loans, you are still paying a full month’s interest.
A HELOC offers you the flexibility to borrow against your home’s equity, whenever you need it. With a revolving line of credit, you can borrow and repay over time, a HELOC is a flexible option for ongoing expenses like education, home renovations, or unexpected costs. It works similarly to a credit card but is secured by your home, offering lower interest rates. Here are some of the benefits of the HELOC loan:
  • Flexible access to funds
  • Only pay interest on what you borrow
  • Ideal for long-term or recurring expenses

First State Mortgage is a division of First State Bank of St. Charles, MO. NMLS ID: 416668, and licensed to lend in 50 states. This is not a loan commitment or guarantee of any kind. All loans subject to approval. Programs, rates, terms and conditions are subject to change without notice.