Refinancing Florida Mortgage Loans

admin — Sat, 27 Feb 2010 21:56:21 +0000

Home refinancing is when you take out a new mortgage on your home with an existing mortgage. It is like trading your old mortgage for a new one. Florida offers a lot of refinancing mortgage loans and it can be beneficial for you if you try them out.

What refinancing can do for you

Homeowners look into refinancing their homes because of several factors that ultimately can be highly beneficial to them. Refinancing can help them get cash out, reduce their monthly mortgage payments, get more spending money every month, advance the repayment of their debts, cancel tax liens, pay off nearing balloon payments, and consolidate their first and second mortgage to a lower payment.

The process of refinancing

The process of refinancing a home is just like applying for a mortgage. You have to submit the requirements for assessment and your credit file will be initially reviewed. Your property will undergo a new appraisal so that its current value could be determined. The lender will also order a title report on the property. If all things are satisfactory, then your loan will be easily approved. A new mortgage will then be signed and the old mortgage will be paid off by the proceeds of the new mortgage plus all the additional liens and mortgages on the property. Thus, the only mortgage that will be reflected is the new mortgage.

When to refinance

It is most reasonable to refinance your home when interest rates fall way below the rate of your first mortgage. For example, if you have an initial mortgage at 8 percent with a loan of $100,000 payable in thirty years, and then the current rate falls to 6 percent, your savings will reach $134 a month if you refinance your home at the current rate. Your savings could reach to $48,240 over the life of the loan. Whenever you are looking to refinance your home, you should always consider the long-term savings against what it will cost you to actually refinance.

By: Josh Riverside

Refinance Home Loan: 3 Costly Home Loan Mistakes

admin — Thu, 04 Feb 2010 21:13:29 +0000

If you are refinancing your mortgage there are a number of mistakes that will cause you to overpay for your new mortgage loan. Doing your homework and researching mortgage lenders will help you avoid making these mistakes. Here are three things to watch for when refinancing your home loan.

I. Watch Out for Balloon Payments

If you accept a mortgage with a balloon payment you will be required to pay the amount due on a date specified in your loan contract. If you are unable to make this payment you will have to refinance the loan or sell your property to avoid foreclosure. Mortgages with balloon payments are typically used by real estate investors as a source of short term financing; however, predatory mortgage lenders use them as part of a ploy to take your home. Unless you know exactly what you are getting yourself into avoid any home loan with a balloon payment.

II. Watch Out for Excessive Fees & Rates

If you are a homeowner with poor credit you can expect to pay more for your new mortgage. There are lenders that will take advantage of your credit and charge you excessive fees and rates. Some Predatory lenders try and sell bad credit loans to homeowners with good credit in order to charge higher rates. The only way to know what fair rates and fees are for a homeowner in your financial situation is comparison shop from a variety of mortgage lenders. When you comparison shop the right way it is easy to spot mortgage lenders that are trying to take advantage of you. You can learn more about comparison shopping for the best mortgage by registering for a free mortgage guidebook.

III. Be Careful With Adjustable Rate Mortgages

Adjustable rate mortgages have more risk than traditional fixed rate mortgages. Many homeowners are enticed by the introductory rates and low payment amounts; these homeowners often don’t realize their payments will go up significantly at the end of the introductory period. In addition to this payment increase, the mortgage lender will adjust your interest rate periodically and change your monthly payment depending on prevailing interest rates.

You can learn more about your home loan options by registering for a free mortgage guidebook.

By: Louie Latour

Refinancing loan » Balloon Payments

Refinancing Florida Mortgage Loans

Refinance Home Loan: 3 Costly Home Loan Mistakes