Refinancing has become a popular choice for home owners in Florida. This Sunshine State has many homeowners who have investment properties that are used for rental and vacation homes. Getting your mortgage refinance can help property owners reduce home loan payments in addition to many other wonderful benefits. Just the thought of being able to reduce interest rates by 2% or more which can save thousands of dollars over the term of the loan is a great financial decision to refinance in this Sunshine State.
Here are 10 tips to mortgage refinancing in Florida
1. Future investment: Florida refinancing mortgages allows property owners to hold onto their investment during tough times, until the real estate market bounces back. This is particularly a great benefit to investment property owners who caters to seasonal, long-term and vacation rentals.
2. Refinance when interest rates drop: The best time to refinance your Florida property is when interest rates drop by at least 1- 2 percent in order to obtain significant mortgage loan savings.
3. Know the best reasons to refinance in Florida:
- Refinance to consolidate debt
- Refinance to a fixed-rate mortgage
- Refinance to a lower monthly payment
- Refinance to pay college tuition
4. Consider early prepayment clause: Most refinance loans are subjected to early prepayment fees which could be a disadvantage if you refinance your mortgage. The estimated cost of refinancing your mortgage in Florida ranges between $2,000 and $7,000.
5. Obtain the best Florida refinance deals: The best rates are reserved for people with outstanding credit and a strong history of timely payments, so know your credit score and be realistic when shopping around.
6. Consider your current lender first: First start with your current lender to obtain refinancing. If they cannot offer you a better deal then compare Florida mortgage providers to obtain the lowest interest rate and refinancing rates.
7. Consider how many payment installments remain on your current mortgage note: It is not in your best interest to refinance in Florida if you have less than ten years remaining on your mortgage note. Extending your mortgage terms could end up costing you a lot of money dollars.
8. Seek professional help: Consult with a Florida mortgage specialist or a tax accountant before entering into Florida mortgage refinance.
9. Don’t make the mistake of not shopping around: Finding the best rate for your Florida mortgage refinance will require comparison shopping. Knowing the different options available will help you make a better decision.
10. Refinancing isn’t what it used to be: The days of easy refinancing is over. Many banks and other lending institutions have toughened up on their lending policies so this may not be the best time for you – Just wait until the time is right for your unique situation.
Refinancing in Florida is great as long as you benefit. If there are more advantages than disadvantages to refinancing then why not refinance and reap the benefits?
