Entering into Florida mortgage refinance allows borrowers to reduce home loan payments. Refinancing can be a good option for homeowners and real estate investors. Not only are loan payments reduced, but qualified borrowers can obtain cash back to pay off debts, make home improvements, or take advantage of investment opportunities.

Florida mortgage refinance has become a popular strategy for homeowners within the Sunshine State. A recent report by Freddie Mac claims mortgage interest rates are lower than since the 1970s and mortgage refinance has increased by nearly 20-percent over last year.

Refinancing can be a good choice for real estate investors owning properties used as rentals. Florida’s increasing property taxes and declining property values make it difficult for landlords to remain competitive in providing rental properties to tourists and seasonal residents.

Zillow.com, a real estate information provider, reveals more than 13,000 homes are currently listed for sale in the state of Florida. Approximately 20-percent are bank owned foreclosures listed below current market value. Many Florida property owners find mortgage refi to be a better option than placing their home on the market and competing with low-priced real estate.

Refinancing mortgages can offer financial relief and allow Florida homeowners the option of holding onto properties until real estate market conditions improve. Refinancing also allows investors the option of reducing rental rates. This can be particularly beneficial to investors offering seasonal, long-term, and vacation rentals.

Florida mortgage refi can help investors and homeowners reduce loan payments. However, borrowers must be prepared to pay associated refinance rates which usually range between 2- and 5-percent of the loan value. Borrowers should strive to reduce interest by 2-percent or more to offset refinance rates and substantially lower monthly home loan installments.

Common refinance rates include: loan application and origination fees, attorney review, home inspections and appraisals, loan points, and closing costs. The average cost of Florida mortgage refinance ranges between $2500 and $6500.

Cash-out refinancing gives borrowers the opportunity to receive lump sum cash. Investors often elect this option in order to use funds to purchase additional investment properties, make property improvements, or pay off mortgage notes attached to other properties. However, investors and home owners should take time to determine the true cost of mortgage refinance.

Florida mortgagors should review original mortgage documents to determine if a prepayment clause exists. VA, FHA, and mortgages obtained through credit unions are exempt from prepayment penalties, but all other loans may be subjected to fees.

Mortgagees assess prepayment penalties according to lending protocol. Some charge prepayment penalties if home loans are paid off during the first five years. Others reduce prepayment fees over the course of the loan. Mortgagors uncertain of prepayment clauses should contact their servicing lender to discuss refinancing options.

Another factor to consider when refinancing mortgages is the amount of accrued equity. The majority of lenders require borrowers to have a minimum of 5-percent equity before refinancing can occur. Borrowers must also possess a high fico score and solid history of paying loan installments on time.

Florida homeowners often turn to their current lender for refinancing. However, mortgagors should compare mortgage lenders to obtain the best refinancing rates and lowest rate of interest. One trusted source for comparing mortgage providers is Bankaholic.com.

It is strongly recommended to consult with a mortgage specialist or real estate attorney prior to entering into Florida mortgage refinance. While refinancing can reduce payments, it may not be the best option. Conduct research to determine the true cost of mortgage refinance before placing real estate at risk.

Author Bio: Simon Volkov provides a comprehensive real estate library focused on home buying strategies, real estate investing, foreclosure prevention and Florida mortgage refinance options. Visitors can subscribe to Simon’s mailing list to receive timely information about the real estate market. Learn more at www.SimonVolkov.com.

Category: Real Estate
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