Many homeowners in Florida, excited by the recent news that current mortgage interest rates are well under five percent, are seriously considering refinancing their homes. If this describes you, you will want to learn some basic information about home loans and florida mortgage refinance. Understanding what the various home loans are and how they work will give you the resources you need for selecting the perfect loan for your next Florida mortgage refinance.
The florida refinance mortgage rate is quite low at the moment. On a $200,000 home loan for the borrower with excellent credit, you can find a Florida refinance mortgage rate at around 4.5 percent for a thirty-year fixed rate home loan, and as low as 2.9 percent for a five-year adjustable-rate mortgage, also known as an ARM.
There are several differences between a fixed-rate home loan and an adjustable-rate home loan that you will want to consider when you go in for Florida mortgage refinancing. A fixed-rate loan guarantees that you will pay a fixed Florida refinance mortgage rate for the loan term, which can range from fifteen to thirty years long. This makes it easier to budget for your house payment if you know that the amount will remain basically the same over the life of the loan. The lowest interest rates, however, come with a Florida refinance mortgage that utilizes an ARM. An adjustable-rate Florida refinance mortgage means that you will select the term of the grace period when the monthly payment amount will be at the lowest level for the term of the loan. The grace period for this type of Florida mortgage refinance can range from five to seven years. After this time, however, the monthly payment will adjust to a higher level based in part on changes in the interest rates, and you will pay a higher amount from this point onward until the loan is paid off. This sort of Florida mortgage refinance instrument can make sense if you know that you will be making more money when the grace period ends, or if you plan on selling the home before the grace period is up.
Another money-saving feature that works in conjunction with a mortgage refinance in Florida is to also add in debt consolidation. Credit card debt is an unsecured debt, and is not allowed as an income tax write-off, unlike the interest paid on a house payment, which is considered a secured debt. You can save money on variable credit card interest rate hikes by getting a mortgage refinance in florida that allows you to take out the equity you have earned on your home loan, and then apply that amount toward your credit card debt. Many homeowners find that their overall monthly payment amounts on this manner of Florida mortgage refinancing is lower than what they currently pay.
Speak with a Florida mortgage company and see if a Florida refinance mortgage makes sense for you.
