Refinancing a Home Loan in Boca Raton, FL
Do you want to get a lower interest rate on your home loan? reduce your monthly loan payments? switch from a variable-rate loan to a fixed-rate mortgage, or convert your home equity into cash? If yes, then consider refinancing your mortgage in Boca Raton, FL. However, before you consider refinancing, understand everything that’s involved in the process and determine whether refinancing is right for your situation. For example, refinancing with a poor credit score doesn’t make sense as you can’t qualify for better interest rates with a bad credit score.
Learning the nitty-gritty of refinancing will help you decide whether refinancing a home loan in Boca Raton, FL makes sense for you
What is Refinancing?
The process of replacing your original mortgage with a new home loan is referred to as refinancing. Typically, borrowers refinance their home loan to reduce their monthly loan payments, switch from a variable-rate mortgage to a fixed-rate loan, or lower their interest rate. Additionally, some homeowners in Boca Raton, FL, refinance to access the equity in their home. This way, they are able to get some cash to fund home renovations or pay off their kids’ college tuition.
Regardless of what your goal is, the process of refinancing works similar to that for a new loan application. You will need to take some time to determine your goals, research your options, collect the required financial documents, and then submit a formal refinancing application at Fourpath Mortgage.
Benefits of Refinancing a Home Loan in Boca Raton, FL
· Lower Your Monthly Loan Payment
If you have a good credit score and the interest rates in Boca Raton, FL have fallen, you could apply for refinancing to lower your monthly loan payment. The new loan may come with reduced interest rates, and as such, your monthly payments on the loan will decrease.
· Switch to a Fixed-Rate Home Loan
Monthly payments on an adjustable-rate mortgage vary depending on the interest rate. If interest rates in Boca Raton, FL increase, you will have to pay higher payments each month. If you want more control over your finances and want to pay fixed payments towards the loan each month, you can refinance your mortgage to switch from an adjustable-rate loan to a fixed-rate mortgage.
· Eliminate Private Mortgage Insurance
If you have enough principal paid off or substantial property appreciation, you can refinance to remove mortgage insurance. Your total monthly payments will reduce when you are no longer required to pay mortgage insurance.
· Reduce the Term of the Loan
When you took out a home loan in the early stages of your career, a 30-year loan might have made the most sense because monthly payments on this type of loan are low. However, if you want to pay off your mortgage sooner and get out of debt, you can refinance to reduce the loan term and save money in interest by paying off the loan sooner.
If you want to refinance your home loan in Boca Raton, FL, get in touch with Fourpath Mortgage. Call us at 954-507-7553 or complete the refinancing application here.