One of the questions we get most often from consumers these days is, should they refinance? With rates at historic lows, mortgage rates are the best they’ve been in over a decade. It’s an excellent time to look at your mortgage rate and discover what benefit you could receive from refinancing. We’d like to share some of the things you should consider when making the decision to refinance in Central Florida.
Reasons to Refinance
Refinancing can be used for a variety of reasons. During a divorce, refinancing is often used to remove one spouse’s name from the mortgage. You might want to refinance to remove mortgage insurance if you have an FHA loan, or you might want to do a cash-out refinance for home improvements. Some people simply want to lower their interest rate, while others want to reduce the term of their loans or lower their monthly payments. Whatever the reason, refinancing is an excellent opportunity to save money and increase your financial flexibility in uncertain times.
Interest rates are really low right now, so you’ll want to look at the interest rate on your current mortgage. If you are 2% above the current rate, it’s absolutely a good time to refinance, as long as you can keep the closing costs relatively low. We recommend that you work with your lender to shop the best rates and watch the market for a while to lock in your rate at the lowest point possible.
The other thing to look at is the closing costs you will have to pay when refinancing your loan. You might get a great rate with your lender, but you definitely want to compare the closing costs of lenders and even title companies, because they are not all the same. Although two lenders may be able to offer the same or similar interest rates, one can be much cheaper on the closing costs. It can really make a difference of several thousands of dollars in your pocket. Closing costs average 1.5% of the mortgage amount, so if you are getting a $250,000 mortgage, your closing costs would be $3,750.
Title Company Selection
The title company who will handle the closing of your refinanced loan serves as a liaison between the lender, borrowers, attorneys, surveyors, and government officials when you refinance, so their role is crucial. During the refinance process, the title company will search public records to confirm ownership and ensure there are no other outstanding liens or encumbrances on the property. If you have a title insurance policy on your original loan, it can be applied to your new refinanced mortgage. You usually won’t get a new title when you refinance, unless the property ownership is changing (in divorce, for example). When you refinance you do have the ability to select your own title company in Florida. You’re leaving money on the table if you don’t explore that option. Nine times out of ten people are not thinking about that and instead go with whatever title company their lender selects because they don’t realize that they have a choice. The lender often does not clearly disclose that the title company is a third-party vendor that you are able to select for your home refinancing. Choosing the right title company can not only help make the refinance process faster and smoother but can also help you save more money on your closing costs.
Virtual Notary Service
In 2020, a new Florida law was passed that allows notary services to be done remotely. This is a really exciting development that we have been championing for a while. It’s exciting for us here at StoneBridge Title because it makes refinancing so easy for Florida homeowners. Closing on a home refinance in Central Florida can now be done from the comfort of your home or office, using your laptop or mobile phone.
Central Florida Refinancing Questions?
StoneBridge Title is here to serve the refinancing needs of Central Florida homeowners. We have an attorney on staff who can help with even the most complex real estate law issues to get your refinancing closed smoothly, efficiently, and on time. Our refinance closing costs are very competitive, and we even offer instant closing quotes, right on our website! We’re also offering a special discount for our blog readers. Contact us at Info@SB-Title.com or call (407) 613-2068 and mention this blog post to receive a $100 discount on your refinance closing costs.