What You Should Consider Before Refinancing Your Mortgage

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Refinancing Your MortgageThinking about refinancing your home? Refinancing is essentially taking out a brand new (often higher) mortgage for your home, paying off your existing mortgage, and keeping what’s leftover, if anything, in cash. Some people refinance to lower their payment, usually by extending their mortgage term for more years, while others may refinance with a higher payment and shorter term so they can pay the mortgage off faster. Some refinance to a higher mortgage than they currently owe, up to the value of the property, to make a large purchase or invest into retirement savings. No matter what you want to refinance for, it’s not a decision to be taken lightly. Many factors will affect your refinance, but here are some top things to consider before signing that refinance paperwork: Read more

What You Need to Know About Closing on a Refinance

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You may think that refinancing your home is just a matter of signing a few documents with the bank. However, it is actually a bit more complicated than that. When you refinance your home, you will go through a closing process similar to when you first bought the property. The only difference between that closing and your refinance is that there is no seller or real estate broker involved in a refinance because you already own the home.

Closing Costs

There are closing costs associated with a refinance just as there were when you first purchased your home. Closing costs could include fees for credit reports, appraisals, application fee, loan origination fee, and other fees and assessments. The average closing costs for a refinance in 2017 were about 1.5 percent of the refinanced loan amount.

Your closing costs may not need to be paid up front. For some traditional loans, closing costs can be incorporated into the loan so you don’t have any money to pay up front. There are some loan types, such as FHA loans, that do not allow for this. In those instances, you will need to have a cashier’s check for the amount of the closing costs with you when you arrive for closing on your refinance.

What to Bring

Closing on a refinance usually happens in the lender’s office or business location, although it can sometimes be arranged to occur in your home. You will need to bring a government issued identification card, your closing disclosure to compare with the final documents, and a list of contacts such as your attorney in case questions arise during the closing process.

If you are working on a refinance for your home, or think it may be the right option for you, we can help. Contact us today for more information and an appointment.

What Should You Know about Refinancing?

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Owning a home you love shouldn’t come at the expense of paying too much money each month to maintain your mortgage. This is why the option of refinancing is available. If you’re ready to lower your monthly payments, here’s what you should know.

What Exactly Does It Mean to Refinance?

Refinancing is essentially a second mortgage application process. Rather than sticking with the terms of your initial mortgage, you have the ability to apply for a new mortgage loan on new terms. This involves a new home appraisal, verification of employment and income, proof of ongoing debts, and more. Many people consider this option if interest rates have decreased since they obtained their first mortgage or if they now have a better credit score to secure an even better interest rate. Read more

Refinancing an FHA mortgage

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Do you know the difference in how interest is collected on a conventional mortgage loan vs an FHA mortgage loan?

  • On a conventional loan, interest accrues daily. So every day that loan is outstanding, you owe one more days interest to the lender.
  • On an FHA loan, interest accrues monthly. So once the calendar turn to a new month, you are charged interest for the entire month.

    • When you are refinancing your FHA mortgage, time the closing to take place at the end of the month. Allow time for the 3 day rescission period to run out and have the loan “disburse” on the last business day or second to last business day of the month. There’s no need to double pay a month

    How to save money when refinancing your Florida mortgage

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    If you are like most people, you are refinancing your home in Florida to lower your monthly payment, not spend a ton of money on closing costs if you don’t have to. Here are a few tips to help you keep more cash in your pocket when it’s time to refinance!

    • Ask your title insurance agent if you qualify for a “Reissue Credit Discount.” You will need a copy of your “Owner’s Policy of Title Insurance” that was most likely issued issued when you bought your home.
    • You may be able to avoid the cost of a new survey if you have one that is still accurate. A survey can cost from $275 – $500 or more, depending on the size of your property.
    • Shop around. Although Florida has a promulgated rate for title insurance and you won’t see much difference from one company to the next, you are likely to find a difference in charges for the Closing Services Fee, Title Search, Deilvery Fee, Wire Fee, etc. It pays to shop around and ask questions.

    Feel free to call our office if you have more questions about the closing costs involved in refinancing your home in Florida. We’ve helped Florida homeowners in most every county refinance their mortgages and we can help you too! Give us a call at 800-237-9190 today!