Florida Mortgage Refinance: Strategies for Reducing Home Loan ...

Article by Simon Volkov

Florida mortgage refinance is becoming increasingly popular for property owners within the Sunshine State. Mortgage financier, Freddie Mac recently reported refinancing has increased by nearly 20-percent this year. Presently, interest rates are lower than they have been since the early 1970s.

Borrowers who enter into Florida mortgage refinance can reduce home loan payments and obtain cash to pay off high-interest loans or make home improvements. Refinancing mortgages can also be a good option for real estate investors with rental properties. Florida?s declining property values and increasing property taxes have made it challenging for landlords to remain competitive in the rental market.

Real estate information provider, Zillow.com lists more than 13,000 properties for sale in the Sunshine State. Nearly 20-percent are real estate owned bank foreclosures listed below market value. Many homeowners find Florida refi to be a better option than listing their home through a realtor and competing with discounted properties.

Refinancing while interest rates are low can provide financial relief and allow Florida property owners to hold their property until real estate market conditions improve. Mortgage refinance also gives investors the opportunity to reduce rental rates. This can be especially helpful for investors who offer seasonal and vacation rentals.

Before borrowers can enter into Florida mortgage refinance they must obtain financing approval from their lender. While many people refinance through their current lender, borrowers should take time to comparison shop. As little as one-quarter percent reduction of interest can amount to thousands of dollars in savings over the term of the loan.

Mortgagors must be financially prepared to pay refinance rates which can range between 2- and 5-percent of the loan value. Borrowers should review their original loan documents to determine if a prepayment clause exists. Mortgages obtained through the FHA, VA, or credit unions are exempt from prepayment penalties, but other loans can be subjected to fees. Mortgagors uncertain of prepayment clauses should contact their mortgage provider to discuss refinancing options.

Refinance rates include loan points, loan application fees, inspections, appraisals, attorney fees, and closing costs. On average, the cost to refinance mortgages in Florida ranges between $ 2500 and $ 7000.

Another factor to consider when refinancing mortgages is the amount of accrued home equity. Most mortgage providers require borrowers to have a minimum of 5-percent equity. Borrowers must also possess high credit scores and a long history of paying loan installments on time.

It is strongly recommended to consult with a real estate lawyer or mortgage specialist before applying for Florida mortgage refinance. While refinancing can reduce payments, it may not be the best option. Spend time conducting research to determine the true cost of mortgage refinance before placing real estate at risk.

Real estate investor, Simon Volkov provides a comprehensive article library focused on home buying strategies, real estate investing, and Florida mortgage refinance options. Subscribe to Simon?s mailing list to receive additional information about the real estate market at www.SimonVolkov.com.

Source: http://floridamortgageguide.org/?p=52

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