The Core Mortgage Team is ready to help Florida homeowners decide if now is the best time for refinancing your mortgages and to help you close the deal on a new loan.
We’ll walk you through everything you need to know about refinancing and help you choose the right loan!
It’s important to keep in mind that refinancing a mortgage doesn’t pay off your debt. It means that you are replacing your current mortgage with a new one—with new terms, conditions, closing costs, and maybe a new lender.
Before you decide whether or not to refinance, know where you stand. What are the loan terms and the current interest rate? Does the loan have a prepayment penalty? Also check your credit score, as it will be a factor in determining how low the new mortgage interest rate will be.
Another factor to consider is the closing costs and fees on the new mortgage. You may have to pay thousands of dollars in fees for your new mortgage, and it may take several years to recoup those costs. If your plans include moving in the near future, refinancing your home loan may not make sense.
The Core Mortgage Team has the answers you need. Our licensed loan originators are here to help you 24/7! Call us now at (855) 554-CORE or (239) 431-5889.
Reasons to Consider Refinancing
Many homeowners consider refinancing for these common reasons:
- Shorten the term of your mortgage. With interest rates at record lows, consider refinancing your 30-year mortgage to a shorter term, such as 15 years. The payment may not be much more than your current payment, if at all, and you will be able to build equity in your home much faster.
- Lower your interest rate. If your home was financed at a higher interest rate than the low rates available today, you may be able to save tens of thousands of dollars in interest over the life of the loan by refinancing.
- Lower your monthly payment. Refinancing your mortgage at a lower interest rate could significantly reduce your monthly payment and save tens of thousands of dollars in interest. Although it could increase the term of your loan, it may make sense to use the difference in payments to save or invest elsewhere.
- Eliminate a second mortgage. If you have a first mortgage and a home equity loan, consolidate your debts by combining them into one fixed-rate mortgage.
- Change from an adjustable rate mortgage to a fixed rate loan. If you currently have an ARM, it may be the perfect time to refinance into a fixed-rate mortgage. Interest rates are low at the moment, but they may not stay this low forever. Locking in a low fixed rate can protect you from rising interest rates in the future.
- Cash out equity. Many homeowners refinance their homes and cash out some of their home equity for major expenses like buying a car, paying for a wedding or financing an education—purchases that might otherwise require you to borrow funds at a higher, non tax-deductible interest rate. If you’re starting a new business or buying more property, refinancing often makes good sense.
What If Your Home is Underwater
Over the last few years, many homeowners have found that their homes are not worth what they once were. If the balance of your current mortgage is more than the value of your home, your mortgage is “upside down” or “underwater.” This is also known as having “negative equity.”
Fortunately, many homeowners qualify for the Home Affordable Refinance Program (HARP), which allows borrowers with negative equity to refinance and take advantage of record low interest rates.
If your property is owner-occupied, your mortgage payments are current, and your loan is owned by Fannie Mae or Freddie Mac, you may qualify for the HARP program.
Call the Core Mortgage Team right away to get the HARP refinancing process rolling before the low mortgage rates disappear!
Even if your loan is not owned by Fannie Mae or Freddie Mac, you may still qualify for a loan modification through a special refinance program offered by lenders in our extensive network.
If you have an FHA Home Loan, there is a streamline refinance option available to existing borrowers whose loans are in good standing but who have negative equity.
Get in touch with us about refinancing today using our online form, call us at (239) 431-5889 or (855) 554-CORE, or visit our Naples corporate office.
The Core Mortgage Team
11983 Tamiami Trail North, Suite #154
Naples, Florida 34110
Phone: (239) 431-5889
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