Online banking has been upgraded! The way you pay bills, send money, and make external transfers is now even easier. Take a look at these upgraded features here

Skip to Main Content
Online Access

Online Access

BankSouth offers immediate and easy access to your mobile and online banking. You can also apply for and review your ReadyLoan mortgage application.

Learn More



For over ten years, BankSouth has helped thousands of families finance their homes.  We know how daunting this may be, but we take the worry and hassle out of the process.

Learn MoreStart Your Application

Why You Should Consider Refinancing Your Mortgage

Feb 17, 2020 Mortgage Speak

Get a Lower Rate, Take Cash Out of Equity, or Get Rid of PMI

When you refinance a loan, you essentially replace the current loan with a new loan. There are a variety of reasons to go through this process, from lowering your interest rate, to planning for life’s important milestones. Let’s look at the most common reasons homeowners refinance their mortgages, starting with reducing the monthly payment by getting a lower rate.

1. Get a Lower Rate to Reduce Your Monthly Payment

If you are a homeowner that is looking to reduce your monthly payment and you purchased your home with a higher interest rate than is being offered now, you may want to consider refinancing your mortgage. Lowering your interest rate has a two-fold benefit. Not only does it lower your payment, but it also increases the rate at which you build up equity in your home.

2. Take Cash Out of Your Home’s Equity

When you owe less than your home is worth, that means you have equity built up in your home. Up to 90% of the difference between what you owe and your home’s worth can go to you in cash depending on the lender’s guidelines and your qualifications. You can spend the cash on home improvements, debt consolidation, paying off student loans, or any other financial needs you may have.

3. Eliminate Private Mortgage Insurance (PMI)

Is your loan backed by the FHA or did you purchase your home with less than 20% down? If so, there is a good chance that you have PMI. Private Mortgage Insurance is used to protect lenders if a borrower falls behind on their payments. If the new loan amount you get when you refinance is less than 80% of your home’s value, you will most likely not have PMI on your new loan.

I want to refinance. What is the process?

The first thing you should do is contact your local Mortgage Banker to discuss what options are available to you. After you discuss your financial situation with your Mortgage Banker, and he or she recommends that a refinance will be a good option for you, the process is very similar to applying and qualifying for a purchase mortgage. You will apply and submit documentation. Your application will then go through processing and underwriting where your information is reviewed and analyzed, and a decision is made on your application. Once an Underwriter has given the “Clear to Close” or final approval on your refinance, the closing can take place. After your three-day rescission period, your old loan will be paid off by the new lender and will be replaced by your new loan.

Is a refinance good for you?

Try out our mortgage refinance calculator today to see if refinancing may be a good financial move for you!

Recent Posts

View our latest news and get the latest industry updates on our blog.

The best mortgage experience features equal amounts of digital convenience and personal service that ultimately put you – the homebuyer - at the center of everything. There are many trade-offs to make when buying a home.  Settling for an inefficient,...
The year 2022 started off and running just like 2021. Real estate agents were seeing record numbers during the holidays, and seller expectations were for a quick contract to sell in one day or off-market. For buyers who still had...
Best practices for Making a Confident Decision Whether a first-time, second third, or fourth, a new home purchase is a different experience each time. And each time there will inevitably be outside influences providing their thoughts and tips about “best...