Cash-In Refis; St. Louis Mortgage Rate Update

Paramount Mortgage Company - St LouisCASH-IN REFIS…

Over the past years, many of Americans pulled money out their homes through “cash-out” refis.  Today, many of my clients are bringing cash into their refinance transactions.  Money is flowing in the opposite direction.

You might consider bringing cash to close your refinance to:

1. Lower your mortgage rate: If your LTV is close to the 80% Loan to Value (LTV) threshold, then bringing money to the table to push your LTV below 80% can get the borrower a better rate.

The same cash-in technique works for refinances on a Jumbo loan ($417,000 for single-family homes).  Bringing in money to get out of a Jumbo bracket and into a Conventional loan can save a half percentage point or more. This technique works on a home purchase too.

2.  Avoid PMI: Reducing your principal balance to an 80% LTV eliminates the burden of PMI.   This can also works for a purchase too.

3.  Pay off your mortgage faster: Putting cash in to limit the increase of your new payment when refinancing a 30-year loan into a 20-, 15-, or even 10-year mortgage is smart. Payments will be higher, but the interest savings can be huge over the life of the loan.

Other Variables to consider:

1.  Recouping your closing costs.  Is there a real benefit to refinancing when considering the cost to refinance VS. the actual savings of the refinance?

2.  Credit Scores: One of the key variables determining interest rates is credit scores. Lower/marginal credit scores do not get the best rates.

3.  Limited amount of cash available: Liquidity.  If you have limited cash available, it’s not worth sacrificing reserves should misfortune strike.

St. Louis Mortgage Interest Rates – December 8,  2010

  • 30-year fixed-rate  4.750% no points
  • 15-year fixed-rate  4.250% no points
  • 5/1 adjustable rate 3.50% no points
  • FHA/VA 30-year fixed rate  4.625% no points
  • Jumbo 5/1 ARM 3.500% no points
  • Jumbo 15 year fixed-rate  4.250% no points
  • Jumbo 30 year fixed-rate  5.500% no points

For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at or you can visit our company website at



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