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Refinance your Tampa Florida Mortgage

Most Americans largest debt payment on a month to month basis is their mortgage. While it’s a large portion of their debt very few people have their mortgage reviewed on an annual basis by a mortgage professional. Roughly 56% of the country has a mortgage currently and most utilize fixed rates for 30 and 15 year terms.

Since there are several reasons a homeowner may choose to refinance, let’s look at 5 of the best reasons.


1. Restructure your existing mortgage.

Some people aren’t very pleased with their existing mortgage or mortgage servicer. In 2017 mortgage servicer satisfaction fell slightly. Restructuring your mortgage through a new company can not only reset your terms but can also get you out of an unhappy relationship with your current lender or servicing company.


2. Your credit score has improved since your purchase.

According to the average credit score of American’s in 2016 was a 673. Prime credit for a mortgage is considered to be 740 or higher. A 50 to 100 point difference can mean a difference of thousands of dollars over the life of a mortgage. With buyers being more credit conscious and great tools like Credit Karma and monitoring services offered it’s not difficult to see where your scores can improve and make those changes. If your credit has drastically improved since you’ve obtained your mortgage you are the perfect candidate for a refinance.


3. Home improvements are on the horizon.

If you’ve owned your home for a year or two and have built up equity you have a great opportunity to utilize that equity to improve your home. With interest rates still very low in relation to the past, more homeowners are utilizing refinances as a means to fund their home improvements. Nerdwallet notes that while a HELOC or home equity line of credit can be okay for small improvements you can potentially save a large chunk of money by utilizing a cash out refinance.


4. Lower your interest rate.

Depending on when you initially bought your home your rate could substantially decrease through a refinance saving you thousands over the life of your mortgage. With rates holding fairly steady right now at almost all time lows and an increase on the horizon due to the recent decision by the Fed now is an incredibly good time to refi and lock in a lower loan rate for the long haul. We often find a large amount of savings for buyers looking to refinance.


5. Remove your private mortgage insurance.

Unless you put 20% down on your existing home you likely have a PMI or private mortgage insurance amount included in your monthly mortgage payment. Normally to remove your PMI you need to have at least 20 percent equity in your home. Once a conventional loan is paid to 80% of the home’s value you may request that the PMI be removed. When the balance drops to 78 percent, the mortgage servicer is required to remove the PMI. FHA mortgages are not included in this scenario. Interest rates are set to rise again in 2018 so now is a great time to refinance and remove your PMI while locking in potential savings over the life of the loan.

Get in touch with us today to discuss your refinance and we’ll be happy to help! Call 813-302-1616 or contact us to get started.

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