Florida Rate Alert! Mortgage Rates are at or below 5%!
Mortgage rates in Florida are at a 37 year low and a refinance could save you hundreds of dollars each month on your bills and mortgage!If you could get a better rate and a great Home Equity Loan with the best lending service In Florida. Why wouldn't you make your life easier, Why wouldn't you,... "Just do it?!"
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A mortgage refinance can be a lot more than getting a better mortgage rate and lower payment!
The government is on your side, rates are at a 37 year low and mortgage market conditions are GREAT, but a “mortgage refi” can do a lot more than improve your cash flow with a lower payment.
A refinance is a change in the terms of an existing mortgage loan. The terms of a loan include the actual rate, the length or “term” of the loan and whether it is fixed or adjustable. There are also other issues in the transaction that affect the basic terms like “cash out”, points and fees.
Together all these pieces can be aligned to achieve different goals. The key is knowing your goals and getting the right loan for you and your situation.
The benefits of a mortgage refinance
- A mortgage refinance can be used to reduce interest rates and costs by moving to a lower rate
- To consolidate high interest debts like credit cards, pay a lower interest rate and gain the tax advantages of a mortgage loan
- To put more equity in a property and pay off the mortgage sooner by taking a shorter term (30 to 15 year)
- To extend the repayment time, (15 ot 30 year) thereby lowering the monthly mortgage payment to make it easier to pay off other debt
- To reduce financial risks by going from an adjustable mortgage rate to a fixed rate loan
- To get cash for home improvements, a new car, college or just about anything
- to reduce monthly payments during challenging financial times with an “interest only” loan where only the interest is paid each period
Basically, refinancing can reduce the monthly payments owed on the loan either by changing the interest rate, or moving to a longer term. More favorable lending conditions like those that exist NOW may also reduce overall borrowing costs. A mortgage refinance is usually used to improve household cash flow but a mortgage refinance can also be used to reduce the risk associated with your current loan
Interest rates on adjustable-rate mortgages go up and down based on chanages in the various indices used to calculate and rate them. When you refinance an adjustable rate mortgage into a fixed rate, the risk of interest rates increasing dramatically goes away, and you get a steady mortgage interest rate for the life of the loan.
A mortgage refinance can also help you pay off high-interest debt like credit cards, with a low interest debt like a fixed-rate home mortgage. This can allow a lender to reduce your costs by more closely aligning the cost and interest rate with your creditscore, assets and current financial situation. For home mortgages, in the United States, there are also tax advantages available with a mortgage refinance, especialy if you don’t pay the “Alternative Minimum Tax.”.
Costs and Risk
There are risks and costs in any mortgage refi.
- Most fixed-term loans have penalty clauses that are triggered by an early payment of the loan, either all of it or a specific portion.
- There are also closing and transaction fees typically associated with a mortgage refinance. Sometimes, these fees may outweigh any benefits of the refi.
- In addition some refinanced loans, while having lower initial payments, may result in larger total interest costs over the life of the loan
- They can also expose you to greater risks than the existing loan
Typically, you should only consider a mortgage refinance if the potential for a substantial cost savings exists. Or,.. if there is a need to extend the loan and reduce the payment due to financial hardships or other financial challenges like medical bills.
Calculating the “up front”, ongoing, and variable costs of a mortgage refinance is an important part of the decision on whether or not to refinance, As a rule of thumb in a rate reduction mortgage “refi” the difference between the old rate and new rate should be at least 1 percentage point, as in going from 7% to 6%.
Best Mortgage and Loan takes pride in educating borrowers.
Most companies would never point out anything negative about a loan in their advertising, especially a mortgage refi,… but we are an “Up Front” mortgage company that cares. And we know a “mortgage refinance” is not always a good idea.
If it is,.. We will get you the best possible loan for your situation and goals. We will do that by helping you get in touch with your goals, thoroughly evaluating your current, financial situation and designing a loan that IS right for you!
Florida Facts and Mortgage Refinance Resources
We have helped people all over Florida improve their financial outlook, get a great Mortgage Refinance and save money every month. If you work with us,...We can get you better Mortgage Refinance rates, service and terms in Florida.
Florida State Web Site - florida.gov
Florida Population -
15,982,378
Florida State Governor - Jeb Bush
Florida State Real Estate Listings - from Home Gain
Florida Department of Housing and Urban Development - HUD Florida
Florida State News - Latest Florida news
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