Florida Mortgage Refinance
Florida mortgage refinance is an option available to individuals owning property in the Sunshine State. This popular vacation destination has been hit hard by economic recession, declining home values, and mass mortgage fraud; leaving many homeowners upside-down on their mortgage note.
Property owners who have managed to stay afloat find Florida mortgage refinance an enticing option. By refinancing mortgages, borrowers can obtain a reduced interest rate to lower monthly payments. This is especially helpful for homeowners offering their property as vacation, seasonal or long-term rentals.
Many Florida landlords find they need to lower rental rates in order to compete in this shrinking market. With an abundance of homes for sale, the majority of property owners find that mortgage refinance is a better option than listing their property for sale. Refinancing mortgages can help homeowners retain their property until the real estate market rebounds and allow them to reduce rental rates.
Whether offering rental properties or simply trying to reduce mortgage payments, Florida property owners should spend time conducting research to determine if mortgage refinancing is the best option.
One of the most important considerations is interest rates. Mortgage experts' state borrowers should only refinance mortgages when they can obtain a minimum 1-percent reduction of interest rates. In order to achieve significant home loan savings, borrowers should strive to obtain an interest reduction of 2- to 2-1/2-percent.
Borrowers with decreased home equity caused by declining property values might not qualify for Florida mortgage refinance. Most banks require a minimum 5-percent home equity before refinancing can occur. Additionally, borrowers must possess a good credit rating and solid history of paying home loan payments on time.
Although refinancing mortgages can reduce monthly payments, borrowers must account for upfront refinance rates. Refinancing involves taking out a new loan to pay off the original loan. Therefore, borrowers will be submitted to the same type of lending protocol as when they took out the home loan.
Lenders charge refinancing fees for processing loan applications, along with loan points, home inspections and appraisals, legal fees, settlement costs and prepayment penalties. Borrowers should review the Truth in Lending statement of their original home loan to determine if prepayment penalties exist. Most loans include prepayment clauses which can amount to several thousand dollars when loans are paid off early.
Borrowers often turn to their loan service provider when seeking out mortgage refinance. However, it is smart to compare mortgage lenders in order to obtain the best rates. One of the most trusted sources for mortgage lender comparison is BankRate.com. This website provides links to a variety of Florida mortgage providers, along with current interest rates. Comparison shopping can sometimes yield interest savings of 2-percent or more.
Additionally, our Florida mortgage refinance article library offers information and resources to help homeowners make informed choices. Topics range from home loan refinance to buying investment properties, along with foreclosure prevention strategies. We encourage you to subscribe to our mailing list to receive notification when new mortgage articles are published.