Even with last month’s rate increase, interest rates are at historically low levels. However, that rate increase may signal others in the near future. So, if you’re a Florida homeowner who has been thinking about refinancing, the time may be now.

Why refinance?

There are two major types of refinancing loans. The first is rate-and-term refinancing, which homeowners do to save money. They refinance their Florida mortgage balances for lower interest rates and more affordable terms (the length of the loan). The other type of refinancing is cash-out refinancing, where you take out a mortgage for more than you owe on your home, and then use the difference in cash to pay off existing debt.

Who should refinance?

Here are five types of homeowners who should consider refinancing their mortgage loans:


  • People who bought homes at higher interest rates. In about the second quarter of 2014, interest rates began steadily dropping. If you bought your home before then, you may want to look at your refinancing options.
  • Anyone currently paying private mortgage insurance (PMI). PMI can be cancelled if your home equity has reached 20 percent. A new loan and new appraisal may prove you’ve reached that threshold and your PMI can be eliminated.
  • FHA mortgage holders who want to reduce their mortgage insurance premium (MIP). FHA annual MIP rates vary based on the length of your loan, the amount you’re borrowing, and your loan-to-value amount. Refinancing could help you reduce or even eliminate your MIP.
  • Homeowners who have other, higher-interest debt. Cash-out refinancing could help you eliminate some other debts that are costing you more, like credit cards.
  • Homeowners who need to make some improvements. If you don’t have high-interest debt, your home equity could be used to make repairs or improvements.


Check with a knowledgeable lender

There are a number of variables you will need to consider if you’re thinking about refinancing. At Embrace Home Loans, we have expert Florida mortgage lenders who can help homeowners evaluate their refinancing options and get you the refinancing you need. Call us today at 407-733-6425.