A mortgage refinance is the process of getting a new home loan to replace an existing one, it can be the best option if you are looking to reduce your monthly payment. In Florida we have many loans programs available for Primary or Investment properties.
Refinance Loans in Florida
Refinancing might be a good option, see below why:
- To Lower the interest rate: If you decide to lower the interest, the monthly payments will be lower, which translates into monthly savings and less interest paid in the life of the loan.
- To change to a better mortgage program: An example is to go from a FHA to a Conventional program, perhaps your only option before was to accept a program with worse terms, but now that you have an excellent Credit Score and your property has more equity, as result you can choose the best mortgage program now.
- To reduce or extend your repayment term: If you reduce the time of your debt, this will help you lower the total costs of the loan in its entire life, it means that the less time of the loan, the less interest will be paid.
- To Cash-out: Your house has acquired a lot of equity and you want to use that money to make repairs and improve your property, refinancing will be the most viable option for you.
- To Consolidate Debts: This is the classic reason for refinancing, joining all debts into one, benefiting from low interest rates for home mortgages, which are lower than car, personal, or credit card loans.
What is refinancing of loan?
A refinance occurs when the terms of an existing loan, such as interest rates, payment schedules, or other terms, are revised. Borrowers tend to refinance when interest rates fall. Refinancing involves the re-evaluation of a person or business’s credit and repayment status.
Does Refinancing Home Loans hurt your Credit Score?
The answer is NO. Refinancing your home loans may lead to a minor drop in your credit scores due to the hard inquiries from the applications and opening of a new credit account. But over time, your scores may recover and then increase if you continually make on-time payments on your new loan, and maybe after a debt consolidation your score will increase to the maximum levels.
What credit score do you need to refinance?
620 or higher. To refinance, you will usually need a credit score of at least 580 using an FHA program loan for Owner Occupied. However, if you’re looking to take cash out, your credit score typically will need to be at least 620 or higher.
If you are thinking of refinancing your property in Miami, Florida, send me a message in the box below or click here, and I will be ready to provide you with a totally free Financial Advice.