Interest rates for 30-year, 20-year and 15-year fixed rate mortgages remain low as compared to August of 2015.  If you’re a homeowner with a Florida mortgage, should you refinance now?

It’s certainly worth the time to check to see if refinancing your home makes financial sense. Refinancing can certainly benefit you if it reduces your mortgage payment, shortens the term of your mortgage loan, or increases your home’s equity. To decide that, though, it’s important to actually check the facts, rather than relying on “common sense” ideas about mortgages that may not be actually true:

  • Refinancing Takes a Long Time: Many people feel that refinancing is stressful and time-consuming. That’s true of refinancing in the past, but it’s not necessarily true today. Mortgages today are simpler and much faster than they used to be. While the process will depend on factors unique to you, like your personal finances, the amount of equity, and your credit report, in general, refinancing is not as difficult as many people think it is.
  • The 2% Rule: Other people have heard that they shouldn’t refinance unless they can get a rate that’s two percent lower than their current rate. This is an old rule of thumb that dates back to when mortgage loans were much smaller and homeowners lived in their homes much longer. In fact, with today’s larger loans, even a quarter-point rate reduction may save you significant amounts of money.
  • Not Enough Equity: Many people believe they don’t have enough equity in their homes to refinance. It’s true that at least 20 percent equity is ideal (and may allow you to eliminate private mortgage insurance or PMI payments), refinancing can make sense even with much lower equity percentages.

Get the Facts

The main thing to remember about refinancing is that your situation is unique. At Embrace Home Loans, we work with many Florida homeowners to refinance their homes. We can review your finances, your existing Florida mortgage terms, and your personal situation, and help you evaluate if refinancing is right for you. Call us today at 407-733-6425, and we’ll help you decide what’s right for you.