When rates get down to where they are now, many Florida homeowners tied to higher rate adjustable or even fixed-ate mortgages seek refuge in a little something we here in the “High-fangled Florida Home Loan Financial Biz” like to call a Refinance.
When you refinance your Florida mortgage, what you’re essentially doing is paying off the old mortgage with the proceeds from your new one. Note – this is not the same as re-fiancee… that’s for another day – and another blog…
A Little Back Story
When you take out a Florida mortgage, what you are essentially doing is establishing a contractual agreement between yourself and a lender. This contract is what defines the terms under which the money you borrow for your Florida home will be repaid.
Provisions covered in the terms of your home loan include items such as the interest rate you pay, the term – or length of time you will have to pay off your loan, and of course, the amount of money borrowed. You will also notice something called the amortization schedule – a breakout of exactly how many payments will be made over however many months and years – typically ending up at a figure that’s a good bit higher than what you originally borrowed. Ah, sweet delectable interest… we love you so…. NOT!
Why Refinance Your Florida Mortgage?
As a Florida home owner, you may want to refinance your mortgage to take cash out against your home’s equity for things like college, home repairs, debt reduction, etc. Many Florida home owners today are simply using the refinance option to reduce the life or overall amount payable on their loans – opting not to take any cash out in the process.
Whatever your reasons for refinancing – it’s likely that you will choose to do so in order to take advantage of a better interest rate, negotiate more attractive loan terms (the duration of your loan), or both. I typically tell my clients to consider refinancing when rates drop around 1.75% or more below their present mortgage rate. In some cases I play things a little closer to the vest and suggest my clients wait until they see a drop of nearly 2.0%. While others may feel this is a bit conservative – I just want to be sure that my clients truly benefit from the refinancing process.
It has to be said here that there is no rule governing how many times you can refinance, nor is there a foolproof way to determine whether or not a refinance makes sense. In general, if you can reduce your monthly payment while limiting your closing costs, a Florida home loan refinance may be right for you.
Some of the more tried and true reasons to refinance your Florida mortgage include:
- Converting from an ARM into a fixed rate mortgage (or vice versa)
- Taking funds to use for another purpose by paying off third-party debts or for cash
- Extending the life of your Florida mortgage from 15 to 30 years to achieve payment relief
Parting Shot Thought
I leave you this post along with a parting gift… a clip from the movie Caddyshack. You know, the part where Carl Spackler tells a young caddy about when he was caddying in the Himalayas for the Dali Lama and asked His Holiness for a tip…
Ahh.. It’s a timeless story… truly. And, if you fortunate enough to have the pleasure of sitting on the veranda of your favorite Florida Luxury Home looking over a nice ocean view and sipping the adult beverage of your choice as you ponder it – well, then… you are indeed fortunate. Just make sure you’re not paying too high of an interest rate on that Luxury home!
I assure you that in almost every case… refinancing your Florida home will prove to be a simpler and less expensive process than than you experienced purchasing it. The paper work will be less, and you won’t have to pay your Realtor their commission again (though, a highly qualified Florida Realtor is worth every penny of commission they earn!).
Oh, and the stack of paperwork you sign at closing will be much smaller – which, in the words of Carl Spackler from Caddyshack… is nice.
As always, seek the advice and wise counsel of an experienced Florida mortgage broker to help you determine whether refinancing your home is the right move for you and your family.
If you’re looking to refinance of your Florida mortgage, please give me a call at 863-604-3019, or contact me via email at kevin.s@sigfunding.com.
Apply for a Florida Mortgage Today
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Kevin Sandridge
The Florida Mortgage Pro
Signature Home Funding
410 Laurel Cove Way
Winter Haven, FL, 33884 |
Mobile: 863-604-3019
Fax: 888-496-0265
kevin.s@sigfunding.com
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We are not the FHA, VA, USDA, HUD or any other government organization. The content on this blog is intended for information purposes only. 
Looks like we might just have another refi boom on our hands in the near future. I think many Americans could be helped out greatly by refinancing their homes. The current low interest rates could just help, people priced out of the market during the real estate boom, be able to purchase a home.
James, thanks for your reply! I agree, and have seen an increasing number of refinance applications come through my site. We’re not going to see stabilization until folks are able to make their monthly payments.