Refinance Loans

As interest rates start dropping in the market, people begin to look into their refinancing options. Many homeowners think that the only reason to refinance is to reduce their monthly mortgage payment when in fact, homeowners refinance for a variety of reasons. It is important to approach refinancing with caution as it could end up costing you more money in the long run. At Continental Mortgage, we will guide you through the process and take the guesswork out of refinancing so that you know you have made the best decision.

Refinancing a mortgage can allow you to:

  • Obtain a better interest rate to either lower payments or reduce a loan term
  • Reduce monthly payments in exchange for an extended loan term
  • Consolidate debt into a single loan
  • Switch from a variable-rate loan to a fixed-rate loan
  • Take advantage of home equity to acquire cash

If you are one of the many homeowners shopping for a better interest rate, there is an old rule of thumb that states, if you can improve your interest rate by at least 1%, refinancing will be beneficial. This is of course a rule of thumb and every individual’s situation should be reviewed thoroughly to see if this holds true.

Homeowners throughout Miami, Ft. Lauderdale, and Palm Beach who plan to stay in their current homes for the foreseeable future are ideal candidates for refinancing. Closing costs will need to be paid when refinancing a mortgage, just like when you first purchased your home. These costs can be significant and are often a deciding factor when refinancing. If you plan to stay in your current home for a while, the long-term savings should outweigh your closing costs.

Consider how many payments are left on your current mortgage as well. For many homeowners, it is very important to not have a mortgage payment after retirement. Refinancing one 30-year mortgage into another 30-year mortgage will lower your monthly payment, but it could also mean making mortgage payments well into retirement.

For those who have certain government-backed mortgages such as FHA or VA loans, streamline refinance programs are available. These programs make refinancing simple, fast, and cost-effective. To protect borrowers, streamline refinancing is only available if it will provide the borrower with a “net tangible benefit.” In other words, streamline refinances are only available if a borrower will save money. Streamline refinance programs remove the uncertainty and doubt many individuals have when refinancing.

Cash-out refinances allow you to refinance your current mortgage into a new loan of a higher amount. A cash-out refinance can be useful for homeowners who need cash for things such as home repairs or to pay off high-interest debt. Home equity loans are a similar type of product however these are additional loans on top of your existing mortgage. Cash-out refinances are a true refinancing of an existing mortgage.

Continental Mortgage specializes in a variety of Florida refinance loans throughout Miami, Ft. Lauderdale, and Palm Beach. Whether you need cash for a remodeling project, or just want to take advantage of lower interest rates to lower your monthly mortgage payment, we are here to help. To learn more about your refinancing options, contact Continental Mortgage today.