Florida Mortgage Loans Primer

Anytime you take an existing loan or debt and modify it or replace it with a new loan, you are refinancing.  By far, the most common type of refinancing loan in Florida is a Florida mortgage refinance loan.  Is refinancing a smart option for you?  That is what we will look at in this article.

Is Refinancing or Obtainning an Florida Mortgage For You?

If you have calculated that refinancing could potentially reduce the amount of interest you pay or lower your monthly home payments, then you should seriously consider a Florida mortgage refinancing loan. If you are unsure of whether or not you can save money by financing, we can help you determine the benefits of refinancing with no obligations, we are happy to give free Florida home loan advice.

Let’s look at an example Florida mortgage loan scenario.  When your initial principal amount was calculated on your loan, they factored in your credit rating, the amount you put down, and the interest rates that were current at the time.  However, situations and markets change.  Perhaps your credit rating has improved dramatically, or the Fed has made changes that have moved the overnight fed funds rate to an all-time low.  These are just some scenarios where refinancing your Florida mortgage loan might be a smart decision.

The obvious benefit to refinancing your Florida mortgage loan is that you will save money by either lowering your monthly payment to free up cash flow, or cutting back on the amount of interest you are paying on the loan.

One client of ours had a 30 year Florida home loan that he used to purchase his home with.  At the time he got the mortgage loan he had shaky credit, a small down payment and got the loan during a time when the Florida mortgage rates were going through the roof.  About 3 years later interest rates had stabilized and our client had improved his credit score as well.  He looked into refinancing and found that by changing his payment period, he would immediately save thousands of dollars in interest.  Even though he shortened his payment period to a 20 year loan, he was able to make the same payment per month.

Two Situations Where Refinancing Your Florida Home Loan Makes Sense

A lot of people are currently in adjustable rate mortgages. The interest rates were low and the loans appeared to be a good deal, but now these loans are adjusting.  Now that their adjustable mortgage rates are rising, so are their payments.  Some of the Florida homeowners are having trouble meeting their new higher payments. If this is you, then you should look into refinancing see what the options are to converting your adjustable Florida home loan into a more secure fixed loan.

If you have purchased a home and could not put down 20% of the loan as a down payment, you have likely been paying private mortgage insurance in most cases.  However, if your house goes up in appraised value after you have purchased it, and you have grown your home equity, you may be able to refinance it in such a way to reduce or eliminate private mortgage insurance payments.

Also, some people purchase a home because they believe that they are going to sell it in a few years and make a profit.  However, something goes wrong and they are not able to sell the home.  If you find yourself in this situation, do not think you're out of options.  Refinancing your Florida home loan may be the best bet for keeping the home and not losing any of your equity. We can help you understand the options that are available for you and your scenario.

It Only Takes a Few Minutes

If you think that a Florida mortgage refinance loan may help your situation, than we may be able to help.  To help you in this matter, you can use some of our Florida mortgage calculators on our website or speak directly with one of our Florida home loan specialists. We are Florida mortgage refinancing specialists, so do not hesitate to ask us any questions you might have.

Malcap.com proudly serves: Jacksonville, Miami, Tampa, St. Petersburg, Hialeah, Orlando and
Tallahassee in addition to many other Florida cities.