You may wish to make some important home improvements. Perhaps you need to find a way to lower your monthly mortgage payment. There are many reasons to consider a Florida refinance. When you shop for loans, you may have more options than you realize.
Second Mortgage
You can get money for things like home improvements with loans called second mortgages. However, this is not the option to choose, when you need to lower your monthly mortgage payment. A second mortgage will give you another monthly house payment, in addition to your current mortgage. However, it can be a good way to get extra money that you can use for any purpose that you like.
In some cases, a second mortgage can lower your total monthly bills. For example, you may have six hundred dollars a month in charge cards and other bills. You may be able to borrow the money with your home as collateral. You then take the money that you borrow and pay off the bills.
Your new payment may be something like three hundred dollars per month. You pay off bills that total six hundred dollars a month, and that is a three hundred dollar monthly savings. In cases like this, getting a second mortgage can help you meet your budget, and give you a little extra money each month.
Getting a New Loan or Mortgage
If you need to lower monthly payments, refinancing may be the answer for you. This is especially true if your main concern is lowering your monthly house payment. There are several ways that refinancing can lower your current house payment.
You may still owe a lot of money on your home. However there is a strategy that may help you get a smaller payment. Check out interest rates, and look for a new mortgage for two percent less than your current loan. If you can lower the interest rate by at least two percent, you will save money. Lower interest means a lower payment. This is partly due to less money being paid for principle.
When you do not owe a great deal on your home, a new mortgage can give you a much lower payment. However, it may be best to simply place more on your principle each month. Yet, you might need additional money and a lower payment, and this may be a good option to look at.
You also need to exercise caution with some kinds of refinancing. It is very important to know all of the closing costs. If you have to pay a great deal in closing, it can raise your principle, and this can affect your payment. Also remember, when you see a monthly payment amount advertised, they are not telling you the whole story. These amounts do not include insurance and taxes. Taxes and homeowner insurance can add a great deal to your payment.
Summary
There are many reasons to consider borrowing money on your home. The two major options are refinancing and second mortgages. If you need to lower your house payment, a Florida refinance is the way to go. However, if you have other bills to pay off, you might look into the options of a second mortgage. Beware the pitfalls of all loan situations, and remember to read the fine print. Also remember that the advertised payment amounts do not include your real estate taxes and property insurance. These things will be added to your payment after you get the loan.
If you're looking to get the lowest Miami mortgage rates or Orlando mortgage rates, give First Nationwide Lending a call; we can help with all your Florida mortgage needs!
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