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Tampa Mortgage Refinancing | Does It Have To Be So Complicated?

Complicated Homeowners in Tampa, Florida and across the U.S. hear the option of "refinancing" their mortgage on a daily basis. On T.V, in the mail, from friends...but what does it really mean? As a local mortgage expert, I will break down the three main mortgage refinancing options. (There are hundreds of loan programs that fall under each category. Contact your local mortgage professional to find out what options are available for you.)

Option #1 - Rate and Term Refinance

With a rate and term mortgage refinance, you will reduce your rate or your term and possibly reduce your monthly payment.
With this option, you should consult with your mortgage professional about the new term of your mortgage versus how many years you have remaining on your current mortgage.
This option is also widely used when moving from an adjustable rate mortgage to a fixed rate mortgage.

Option #2 - Cash-Out Refinance

This means taking out a new mortgage for more than the balance of your current mortgage.
With a cash-out refinance, you can pull equity out of your home in the form of cash. Some homeowners use this option to consolidate debts, pay for home improvements or pay for other items.

Option #3 - Second Mortgage or Home Equity Line of Credit

This is a new mortgage that will be added to your home, in addition to your current first mortgage.
Most home equity accounts work line a credit card, where you have an access to the line limit and make interest-only payments for a specified period, although the line can be paid down at any time.

Which option is best for your financial situation? You should consult with your local mortgage professional and explore your options. Some items to consider in making your decision:

What are your short and long term financial goals?
What are your current mortgage rates?
How much equity do you have in your home?
How long do you plan to stay in your current home?
What is the cost for your refinance?

A mortgage professional will be able to sit down with you and help evaluate your personal refinance options. If you are considering a refinance in Hillsborough, Pinellas or Pasco County, Florida, please email me at LRoss@AmeriFirst.com for a complimentary consultation.

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~View my original article at www.TampaBayMortgageBlog.com, Mortgage Refinancing | Different Options Explained

Leah Ross, Personal Mortgage Consultant

Posted by Leah Ross ~ Tampa, Florida Mortgage on 07/13/2007 05:11 PM

Comments (34)

mortgage refinance, cash out refinance, adjustable rate refinance, tampa mortgage, hillsborough, pinellas, pasco

This post has been included in Florida Information Hillsborough County, FL Information

34 Comments on Tampa Mortgage Refinancing | Does It Have To Be So Complicated?

JUL

2007

Please rate this post!

Fantastic!! You are certainly correct on this. It is made to be more complicated than ever, it is all those commercials!

Leah...read Chuck Christensens blog from the Stacy Chapman story about certifications....another reason not to pay off your mortgage.....or refinance to consolidate debt and keep a researve account!

Open Home ~ Thanks for the comment. Media plays a big role in confusing our consumers. Hopefully through blogging, we can all provide some better information for consumers!

Leah.... great post. The part that everyone should read and focus on is what you wrote at the very end. Something that I stress all too often.

You said, which option is best for you... knowing the clients long term and short term goals... this is soooo big. Well said...

jeff belonger

Leah, really good post, there is never enough info available when it comes to Mortgages, good luck and I rated you a 5 :0)

Tom Weiss

Isn't there some sort of Mortgage Carnival contest happening right now? Have you entered?

Chris... just for real estate.... the mortgage one is in another week or two...

Chuck ~ Thanks for the comment, I will check it out.

Jeff ~ Thanks!! It is so important when looking at mortgage options to think about the future...Mortgage is a big part of ones financial future!

Tom ~ Amen! Thanks for the comment and the rating!

Chris ~ Haven't heard about it...do you have more info?

Leah,

I'm not a mortgage expert but I have had a few in my life and I am lucky that I pay my bills on time.

I'll never refinance unless my current rate goes down at least 2 points or it is not worth it.

My loan has no prepayment penalties at all no soft no hard... my credit is in the 800's experian and 950 trans-union.

My equity line is good for 25 yrs and it only cost me to close on it when it was open $730. Prime-50

Of course my situation is a lot different from others.These are excellent choices for people and some of my clients are going this route as their homes are worth less than they can command in the market.

The only time I consolidated my debt was about 20 yrs ago and it was a credit card that gave me a straight 5% so I paid everything off with it that was at 18%..not sure there is a such a thing now a days.

Neal, every dog has his day...(not that I am calling you a dog)...you know what I mean. Your situation warrants your financial mortgage choices. Right on!

I love the KISS METHOD Leah...

K-EEP I-T S-IMPLE S-TUPID!!!

The media doesn't get this...ya think?

Hummm...

Good post. Refinancing should be a simple, straight forward process. It should go smoothly and with little, if any, hitches.

These types of transactions can be some of your best referral clients in the future if handled properly.

Flagged and rated a 5

Great job!!

The advertisements do a disservice.... you can't always do what you claim in ads. I wish they would tone it down.

Call today: 5.5% (er... 7.25%apr)

Great words....but for those who are in the industry....even the simple things can get complex very easily

I rated the post Leah, a five!

This is broken down pretty simply for other professionals and consumers alike. I'll beat it to the ground, education is vital, for us, for the public. Nice job.

Great post Leah. And no! It doesn't have to be so complicated. I totally agree with your point. Thanks for the read.

Good job Leah. I think that consumers do get overwhelmed with info and therefore wait to refinance out of fear. Your straightforward thinking really makes it easy to understand options. I love seeing mortgage posts featured so congrats!

Leah, OUTSTANDING!!!! Great post..

Susie ~ Love it...KISS method, I will have to remember that! It seems that everything is made to be so complicated. There is a lot that is behind it, but it can all be simply explained too!

Neal ~ Seriously, it was a metaphor...xoxo

Steven ~ Correct! Thanks for the comment.

Tom ~ Gracias! Beware of the asterisk...have you seen these commercials? It might just be in our Tampa market?

Larry ~ Thanks for the comment...let's try to keep it simple as Susie says!

Jason ~ I agree again. I agree on your agree....let's continue to educate our consumers!

Karen ~ There is a bank in town that has a slogan...more simple...I like it! Thanks for the comment.

Janet ~ Thank you for the comment. I agree, it can be scary, but that is our job then to explain and work through the customers fears. I know you are a mortgage professional and I appreciate your support!

Matt ~ Gracias~ Thanks for the comment

Leah, I love this post. I am not in the mortgage business, but I was wondering if I could include this in my next month's newsletter. My newsletter is a hard-copy and I will give you all the credit for this article.

Leah - what a great post - gave it a 5 glad it was featured!! Good info for the upcoming mortgage week in review

Hey Leah, here's more info on the contest.... http://activerain.com/blogsview/132015/ActiveRain-Carnival-of-Content

Would love to see you contribute even though that would be direct competition against little old me....but I'm a sucker for punishment and love competition that will eventually benefit professionals and consumers alike. I think you may do quite well.

Mortgage professionals can take the complication out of this process by just being straightforward. Great post!

what a pruddy star - congrats - wonderful information

JUL

2007

Leah great break down on the refinance options. The most important part is consulting with a mortgage professional for advice.

Leah,

I hear so many of those radio commercials and find them to be generall misleading. Like this one: "Mortgage rates have continued to fall--now is the time to refinance." Duh???

Leah, Congratulations on your star. It was well deserved for an awesome post!!!

Leah....CONGRATS on the FEATURE!!! You're on a roll!!!

JUL

2007

Mana~ You are absolutely welcome to use this article in your newsletter! Thanks for the recognition!

Cyndee~ Thanks for the comment and the rating!

Jason~ I appreciate the info on the carnival! I will check it out. I appreciate the competitive nature...we'll see how it all pans out ;)

Shekeria~ I agree, it can be made complicated. We should all try to make it as easy for the consumer to understand as possible.

Thesa~ Isn't it shiny! I am such a proud mom ;)

Ashley~ Thanks for the comment!

Diane~ Great point. Many mortgage professionals will put a spin on anything to get consumers to call. It's too bad that many don't take the time to explain all the options.

Susie~ Thanks so much! I love my new roll!

AUG

2007

I WOULD LIKE TO DEPOSIT MY FUND IN A EQUITY HOME LINE OF CREDIT, COULD YOU ASSIST ME. I AM READY TO START THE HOUSING PROYECT.

COULD I DEPOSIT MY FUND IN A EXISTING ACCOUNT EQUITY HOME LINE OF CREDIT, THIS WAY I COULD WORK TOGETHER WITH THE OWNER OF THE ACCOUNT; BROKER, LOAN OFFICER, REAL ESTATE AGENT

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