FAQs about Refinancing in Saint Lucie County, FL
Refinancing refers to the process of replacing your original mortgage with a new one. It is beneficial when the current interest rates are lower than the interest rate on your existing mortgage. This is why when interest rates in Saint Lucie County, FL fall, many borrowers rush towards lenders to refinance their mortgage and take advantage of reduced interest rates. If you are thinking about refinancing your mortgage in Saint Lucie County, FL, you would want to know everything you can about refinancing. To help you out, we have answered some common questions about refinancing in Saint Lucie County, FL.
Q. How Credit Score Affects Refinancing?
Your credit score determines your approval. Not only that, but a good credit score will get you better interest rates on your refinance loan. On the other hand, if you have a poor credit score, you might not qualify for refinancing in Saint Lucie County, FL.
A borrower with a loan of $250,000 and a credit score of around 620 may pay around $2,800 more a year in loan interest payments than a borrower whose credit score is 780. Thus, if your credit score is poor, it doesn’t make sense to apply for refinancing.
Q. Is Refinancing Available for USDA, FHA, and VA Loans?
Yes, refinancing is available for USDA, FHA, and VA loans. Not only that, but if you have a USDA, FHA, or VA loan, there may be more options available to you – like streamline refinancing program. Streamline refinance programs are an attractive option as they have a simple approval process where many of the appraisal, credit, or income requirements are removed. It is worth noting that some streamline refinancing programs might not have a cash-out refinancing option.
Q. Can I Refinance to Switch to a Fixed-Rate Mortgage?
Yes, if you currently have a variable-rate loan or an adjustable-rate mortgage, you can refinance to switch to a fixed-rate home loan. In fixed-rate mortgages, the monthly payments on the loan are fixed, and you know exactly how much money you are required to pay towards the mortgage every month.
Q. When is the Right Time to Mortgage?
When interest rates in Saint Lucie County, FL, are lower than the interest rate on your existing mortgage, you should consider refinancing your mortgage. However, before you apply for refinancing, make sure you meet the credit score, home equity, and debt-to-income ratio requirements of refinance lenders.
Q. Can I Refinance to Pay off the Loan Sooner?
Yes, refinancing your existing mortgage may allow you to pay off your loan sooner. This is done by replacing your 30-year mortgage with a 15-year loan. The 15-year loan can be paid off sooner, and it allows you to save more money in interest over the long haul. It is worth noting that the monthly payments on a 15-year mortgage tend to be higher.
We have answered some common questions about refinancing in Saint Lucie County. If you want to apply for refinancing now, contact Fourpath Mortgage at 954-507-7553. If you have any other questions, feel free to reach out to us. We’ll answer it gladly.