Refinancing your home involves starting over from scratch and applying for a brand new loan. Whether or not you plan to deal with your current mortgage lender or a new lender, the new mortgage loan will pay off the old loan and you will then make your monthly mortgage payments according to the new loan terms. Here is a beginner’s guide to mortgage refinance in Florida.
A Guide to Refinancing Your Mortgage in Florida:
- It is not a wise decision to refinance if your current interest rate on your mortgage is lower that what you will get on the market. If your current mortgage rate is higher than what’s being offered, it is a good time to start thinking about refinancing your mortgage in Florida.
- Refinancing your Florida mortgage could be right for you if you plan to live in your home for a very long time. However, if you intend to sell your home in the near future, refinancing does not make sense
- If you have a bad credit rating and are looking to refinance you mortgage, get a copy of your credit report first. Check your credit report for mistakes and get them removed. Work on raising your credit score to a decent point before consulting a Florida mortgage lender.
- Refinancing your mortgage is a good idea, but it may not be worthwhile for everyone. If you are not going to save money, refinancing should be avoided. It is okay to refinance if you will get at least two percent less than what r current rate is.
- If you are looking to get out of a high interest rate loan to switch to a lower rate mortgage, this is an excellent idea but only if you intend to remain in the property long enough to make up the costs of the additional refinancing fees.
- Make sure you can afford to refinance your home. Refinancing your mortgage can cost approximately 2 percent of the total loan amount, so make sure it is something that you can afford to do. Consider these costs that are involved when refinancing a mortgage, including closing fees, origination fees, appraisal fee, prepayment penalties, title search, application fees and other costs that are involved when doing a mortgage refinance in Florida.
- First check with your current mortgage lender for refinancing deals. You might be able to avoid most of the costs associated with refinancing if you refinance with your current lender.
- If your credit rating or finance is not in order, do not consider refinancing just yet. Get a copy of your credit report and correct any mistakes. Then work on improving your credit score in order to qualify for better mortgage deals in Florida.
Hope this beginners guide to mortgage refinance in Florida help you ask the right questions and make a good decision when considering refinancing your loan.