How Do I Know If I Should
Refinance My Florida Mortgage?

There are many different things to take into consideration when you are weighing the options of whether you should refinance your Florida mortgage. Let’s take a look at some of the potential positives to refinancing and also some of the corresponding potential pitfalls that you should be aware of before you blindly rush into a decision. You may be able to enjoy some of the following benefits if you structure your FL refi correctly:

 

Lower Monthly Payments – If you refinance your mortgage loan for a lower interest rate than what you had previously been subject to then you could have a lower monthly mortgage payment.

[Potential Pitfall: There are refinancing costs associated with your refinance loan just as there were with your original FL mortgage. These fees are for things like appraisals, credit reporting, processing, underwriting, administrative duties, and also in some cases there are third party fees for escrow, document preparation, title insurance, a notary, and attorney and recording. Some mortgages also have a pre-payment penalty so be sure and have a knowledgeable Florida broker or financial advisor investigate that for you as well. Refinancing costs can vary quite a bit from lender to lender so how do you know if you are getting a fantastic deal or if you are being taken for a ride? First of all, you should speak with a broker that can help you compare offers from multiple lenders. Second, you should keep in mind that a good rule of thumb is that you should be able to recover your refinancing costs somewhere in the neighborhood of two years.]

 

Pay Off Your Florida Mortgage Faster – If you refinance to shorter mortgage term (say a 15 year term from a 30 year term) then you will pay of your mortgage much faster while building home equity much quicker as well. Over the life of the loan you will save many dollars of interest charges if you go this route.

[Potential Pitfall: Be sure not to rush through this comparison process. It will not and should not be a long and involved process but take the time to do it right so that you will not regret your decision down the road. Any advisor or accountant worth their salt should be able to put together a quick spreadsheet detailing your loan costs over time and be able to help guide you in your decision.]

 

Get Some Cash Out of Your Florida Property – If you are able to refinance your first mortgage for more than you owe than you may be allowed to receive some money back and take cash out of your FL property.

[Potential Pitfall: Again, take the time to compare the long-term costs of this approach. This makes sense in many different scenarios, particularly when high interest rate consumer debt such as credit cards begin to pile up, but be sure to plan carefully.]

 

Borrow Against the Equity in Your FL Home – If you have a significant amount of consumer debt (namely credit card debt) and the interest rates are approaching 10%, 15%, 20% or even higher then you should seriously consider this option. Mortgage interest rates are often much less than credit card rates and also mortgage rates carry along with them some very nice tax benefits for those taxpayers that itemize (Schedule A) on their tax returns. Consult a qualified tax advisor for more information about what you are able to deduct.

[Potential Pitfall: Don’t make the mistake of paying off all of your credit cards with a FL home equity loan only to start racking up excessive amounts of debt all over again!]

Compare Florida Mortgage Refinancing Offers Now! (It usually takes less than 30 seconds with no SSN required, no credit check required, and it will give you an idea of what some of the competing Florida lenders will offer you for a FL refinance).

Florida Mortgage Loan Debt Consolidation