Sunday, April 18, 2010
FL Refinance Interest Rates
The Smart Way to Refinance a Mortgage Loan
It pays US homeowners with a mortgage loan to closely watch mortgage interest rates. As interest rates fall refinancing activity increases, whilst an increase in rates reduces activity. Well timed refinancing can save the average US home owner $300 to $400 in their monthly payments.
Here are 5 smart tips to help homeowners to find the best loan.
1. Find a refinance home mortgage loan that reduces your monthly payments by $125 to $150?
Refinancing with existing or new mortgage lenders will cost money. Closing costs and fees can be expensive. If the drop in interest rates is not high enough then there may be no benefit in refinancing the loan. It's worth getting quotes for the new monthly repayments. Usually a monthly reduction in payments of $125 to $150 will break even on costs in 2 to 3 years.
2. How long will the existing property be occupied?
For homeowners who intend to move to another house in 2-5 years then refinancing their mortgage may not be the right move. This possibility should be considered as part of the decision making process.
3. How much are closing costs?
Many people search for the lowest rate of interest and forget to check the closing costs and fees. So the lowest rate of interest with high closing fees may not be as good an option as a slightly higher rate of interest with lower fees. Home owners should look closely at both the interest rate and the closing fees. Work out the break-even period for each lender being considered. Remember to check for any hidden costs too.
4. Are there any other debts?
When refinancing it can be worth consolidating all debts. This particularly applies to expensive credit card debt. People paying high rates of interest on their monthly credit card payments will usually save even more money by paying these debts off with their new mortgage loan. All debts are then consolidated into one monthly payment. Care should be taken to ensure that new credit cards debts do not replace those that have been cleared.
5. Does the existing loan require Private Mortgage Insurance (PMI)?
Many homeowners were required to take out PMI insurance in order to get their loan. Anyone owning more than 20% of the equity in their home should be able to stop paying this insurance.
Alert homeowners can make substantial savings by refinancing their mortgage when interest rates are low. For some it simply reduces their monthly payments, but for many it can mean they can keep their home, by getting a more affordable loan.
Andy offers free help and tips for anyone interested in refinancing their mortgage loan at FL Refinance. Simply visit Flrefinance.org to learn how you can save.
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