Mortgage Refinance in Florida
If you are residing in the Sunshine state and you have a Florida mortgage refinance, then you will surely get some benefits. This state has witnessed a high level of foreclosure rates which resulted in plummeting property values and left many borrowers owing more than their home is worth.
Entering into Florida mortgage refinance can help homeowners reduce monthly loan installments through the reduction of assessed interest. Investors who are offering rental properties can have benefits too.
Vacation rentals and beachfront properties can no longer be charged with high rental rates by most investors since they have to consider the condition of the economy. In the attempt to generate cash flow through investment properties, most investors are now charging less than their mortgage payment.
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A recent report published by industry expert, Zillow, states of the 13,000 plus homes for sale in Florida nearly one-quarter are bank owned properties. Banks list down houses for sale below the market value to recover the loss incurred by the repossession procedure once they have regained ownership of foreclosure real estate.
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Since homeowners and investors cannot gain fair market value, they tend to hold on to their properties, after all, the discounts of properties in Florida are very abundant. In order to save money, those few buyers who buy houses often turn to bank foreclosure.
Mortgagors gain reduced payments through refinancing real estate loans, in that way, they can be able to keep their property until the market conditions improve. Reduced payments also let investors’ lower rental rates without incurring a financial loss.
Another critical element is determining if the current loan includes a prepayment penalty. These information can be found in the TIL or the Truth in Lending statement which is attached to loan documents. When the payoff of borrowers loans early, mortgage lender opt to assess penalties. The amount can reach so high, it can lead up to several thousand dollars.
Prepayment clauses vary by lender. During the first five years, some are still in place. Others may choose to reduce the rate of penalty rather than the course of the loan.
A third consideration is the amount of refinance rates. The average cost of mortgage refinance in Florida ranges between $2500 and $6000. This includes the cost of loan application, loan origination, real estate appraisals and inspections, legal fees, and various closing costs.
In order to be qualified for refinancing, Florida property owners must see to it that they hold a sufficient home equity.
To secure your commitment with Florida mortgage refinance, it is best to consult with a tax accountant or mortgage consultant.