Tips for getting the best Orlando Florida mortgage refinance rates and options
Today's Florida mortgage refinance rates are still historically low. You’ve probably seen plenty of media press about low mortgage rates today. Do you know what that really means and how it benefits you when it comes to mortgage refinancing? Lower interest rates equate to smaller monthly mortgage payments, but the decision to refinance your home should not be based on mortgage rates alone. You need an experienced, Florida mortgage broker to give you the facts and help you decide if now is the time for you to take advantage of these low rates.
Who Should Consider a Florida Mortgage Refinance?
Below we have provided some basic information regarding common home financing options. Please keep in mind that when it comes to refinancing your mortgage, the rate you are offered may not be enough by itself to make the loan worthwhile. Please see our page on lowering your monthly mortgage payment for more details about what you should consider when evaluating your options.
The two main reasons people want to refinance their home is because they are paying more than they reasonably want to spend on their monthly mortgage payment, and they have other financial obligations they would like to take care of (other debts to pay, project expenses, etc.). Another common scenario is when a homeowner would like to ‘lock in’ a fixed mortgage rate. This entails moving from an adjustable rate mortgage to a fixed rate mortgage. Fixed rate mortgages offer the homeowner stability and a monthly mortgage payment that will remain stable throughout the loan’s remaining term; which is almost always preferable when the homeowner expects to live in the home for a long time. Homeowners may also wish to refinance their mortgage if their property has significantly decreased in value (this is referred to in the industry as an underwater mortgage) and they now owe more on their home loan than their property is worth.
If any of these situations sound applicable to you, then you should know that the type of mortgage refinancing solution available to you will depend on the type of loan you currently have and what your overall goals are.
How do I Qualify for a Florida Mortgage Refinance on a Conventional Loan?
You will need a credit score of 640 or higher to refinance a conventional loan and the maximum loan to value ratio on a first mortgage is 95%. If you have a first and second mortgage, the maximum loan to value ratio is 85%. There are two major types of Conventional refinance mortgage programs:
- Rate / Term refinance mortgage programs give you the option to lower your current mortgage rate and/or shortening the term of your mortgage by paying off your existing mortgage and obtaining a new conventional loan at a lower rate. Lower rates mean you are able to lower your mortgage payment, which equates to more immediate disposable income. Lower terms mean the loan is paid off sooner, thus saving you thousands of dollars in interest payments.
- Cash-out or debt consolidation refinance mortgage programs allow you to use the equity in your home to payoff high interest rate credit cards, pay for home improvements, or do with your money as you please.
What Loan Programs are Available to Mortgage Refinance an FHA Loan?
In order to refinance an FHA loan, you will need a credit score of 580 or higher and the maximum loan to value ratio on a first or first and second mortgage is 97.75%. There are two major types of Florida FHA refinance programs:
- FHA streamline refinance programs give borrowers with a current FHA loan the ability to take advantage of lower FHA streamline refinance rates and lower their current mortgage payment without the need of paying for an appraisal or going through the standard income verification (thus saving you additional money in the process).
- The second most common FHA refinance program gives borrowers the ability to consolidate their first and second mortgage at a higher loan to value percentage than is accepted with traditional conventional mortgages.
How do I Mortgage Refinance an Underwater Property?
The Florida Home Affordable Refinance Program, also known as HARP 2.0 and DU refiPlus loans, are for borrowers that owe more on their mortgage than the current value of their home. HARP loans allow borrowers to take advantage of the current lower mortgage rates regardless of the value of their home. The basic qualification guidelines for the HARP refinance program are that your loan must have been originated and sold to Fannie Mae or Freddie Mac prior to May 2009 and you must currently have a loan to value ratio that exceeds 80%.
If you are currently making timely monthly payments, but are paying on a mortgage loan that’s worth more than your property and would like to secure a new lower rate, please see our page on Florida Home Affordable Refinance Program Refinancing Loans for more details about this program.
Whether you would like to stabilize your loan, get cash out of your home’s equity, consolidate your debt, or lower your monthly mortgage payment, you can always count on Florida Home Funding to present you with loan options that are in your best interest. See our other pages for more details concerning your refinancing options:
- Lowering Your Monthly Mortgage Payment
- Cash-Out Refinancing
- Debt Consolidation Loans
- HARP 2.0 Loan Program
- Mortgage Refinance FAQs
Let Florida Home Funding can provide you with a complete debt consolidation analysis to see which mortgage refinancing option is a good fit for you. Call (407) 704-8729 or (888) 515-6048 to speak with a licensed Florida mortgage broker or complete the fast quote form now.
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