Why and When to Refinance Your Home Loan in Parkland, FL?
Refinancing a home loan means replacing your existing mortgage with a new one. Often homeowners refinance to cut monthly payments in premiums, reduce the interest rate on the loan or tap into the equity in their home.
Refinancing a home loan may also help a homeowner pay off their loan earlier or convert their adjustable-rate loan to a fixed rate mortgage. If you own a home in Parkland, FL and are wondering whether it makes sense to refinance your home loan, continue reading. We’ll help you understand why and when you should refinance your home loan in Parkland, FL.
What Refinancing Your Home Loan in Parkland, FL?
When you get a home loan to pay for a house, the money is deposited into the seller’s account. When you refinance an existing mortgage, you get a new home loan. The money from the new loan is used for paying off the balance of the previous mortgage. In order to qualify for refinancing, you must meet the lender’s requirements.
Fourpath Mortgage works with several lenders and you can apply with them to see if you qualify for refinancing. You will be required to file an application which would go through underwriting and then you would move to closing.
Why and When to Refinance Your Home Loan?
Before you make a decision and apply for refinancing, consider whether it makes sense to refinance in the first place. Below we have shared some reasons as to why you might want to refinance your home loan in Parkland, FL.
· Switch to a Fixed-Rate Loan
The interest rate on an adjustable-rate mortgage varies throughout the life of the mortgage. On the other hand, interest on fixed-rate mortgages stays the same. If you want more financial stability, you could refinance from an existing adjustable-rate loan to a fixed-rate mortgage. This way, you’ll know exactly how much you’ll be paying each month throughout the term of the loan.
· Reduce Monthly Payments
If you can qualify for a lower interest rate by refinancing your home loan, you should consider going forward with the decision. By refinancing into a mortgage with lower interest payments, you can reduce your monthly payments and save more money over the term of the loan.
· Pay off the Mortgage Faster
If you have a 30-year home loan, you could refinance it into a 15-year mortgage to pay it off faster. By doing this, you’ll be paying less interest over the term of the loan. The downside to a 15-year mortgage is that the monthly payments generally increase.
· Get Rid of Private Mortgage Insurance on FHA Loan
If you couldn’t afford to make a down payment of at least 20 percent on an FHA loan, you would be paying for private mortgage insurance every month.
This mortgage insurance is only cancellable if you refinance the FHA loan or sell your home. There are certain conditions you must meet before you can refinance an existing FHA loan. If you want to know what they are, just contact the experts at Fourpath Mortgage at 954-507-7553.
Now you know why, when and how Refinancing Your Home Loan in Parkland, FL. If you have any other question about refinancing in Parkland, FL, feel free to reach out to us. We’ll be happy to guide you.