When it comes to refinancing your home loan in Florida, there are a few specifics to be clear on. At Grimaldi Law Firm, a real estate law firm in Hollywood, educating others on the benefits of refinancing is a common practice.
The first thing to know about refinancing, of course, is what it means.
Refinancing is the process of swapping out loans, moving debt to a different loan or lender.
Sometimes a refinance is required or sometimes it is a strategic move. Many people take the refinancing route as things change in their lives, more commonly when looking to:
Save money
Refinancing into a loan with a lower interest rate will help you save big over time. Also, it is helpful if you are currently paying mortgage insurance. Mortgage insurance is required by a lender when your down payment is not big enough. A few years after your purchase, if there is enough equity in your home, you can refinance so you can remove that requirement and lower your monthly bills.
Renovate or update your home
Renovations or home updates can be costly, which is why many people refinance their loan before doing so. If you have equity in your home and can take some out to make any changes that will add value to the home, this is a great opportunity. If that roof is ready to be replaced or your kitchen is still stuck in the same decade you bought your house in, consider refinancing.
Consolidate debts
Refinancing is a great option to consider if you’ve accrued unexpected debts over the years. It makes sense to consolidate loans into one lower-interest loan so you’re not spending a fortune on interest and fees.
Shorten your loan term
Originally took out a 30-year loan term? Refinancing can help you shorten the term, which is a smart option if you’re looking to pay off the loan more quickly.
Change your type of loan
There are benefits to refinancing or changing your loan type that don’t involve saving money, as well. These benefits include choosing a fixed-rate loan if you originally took out a variable rate loan, for peace of mind that your rate is locked in.
While there are disadvantages to taking out a loan it is always wise to connect with a professional real estate attorney to determine if it is the right move for you.
If you’re ready to refinance, you are required to get a title insurance policy for your new lender. Grimaldi Law Firm will act as your closing and title agent to ensure your old mortgage gets paid off in full.. Additionally, we will provide your lender with all necessary documentation, such as the title work and issuance of the title insurance policy. Most importantly, at Grimaldi Law Firm, we will help you reduce your closing costs by repurposing some of the items you used when you purchased your property like your survey or prior title insurance policy.
Make an appointment with us today to learn more about your options and whether or not refinancing is a good idea for you.
At Grimaldi Law Firm, your future is our present.
We can be reached at (954) 491-8707
or
melinda@grimaldi-law.com
Special Note: The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced real estate attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.