VA Refinance Home Loan Miami Fort Lauderdale Florida
Reasons to consider VA refinance loan in Miami.
When you first took out your home loan there’s a good chance you spent time researching a number of loans to check that you secured the mortgage that best suited your needs at a competitive rate. That’s a sensible approach. However, it also makes good financial sense to review your home loan from time to time (ideally at least annually) to check that it is still continuing to meet your needs with the features you need or want, at a competitive interest rate. VA Refinance Home Loan Miami Fort Lauderdale Florida
Today’s mortgage refinances market in Miami is very competitive. New types of loan features and packages are becoming available; loan interest rates vary widely too – and your current loan may not be keeping pace. In our ever-changing lives, you may find that your loan no longer offers the features and flexibility that you need. Or, perhaps you have built up some equity in your home that you would like to tap into to fund home renovations or an investment property. All these circumstances make it worth thinking about va refinance loan. VA Refinance Home Loan Miami Fort Lauderdale Florida
Switching to a new loan Miami or lender can be an important step in helping you achieve financial goals in Miami. Let’s take a look at some of the most common reasons for va refinance loan a home loan. Save money with a lower rate Whilst va refinance loan has the potential to put money back in your pocket, the loan interest rate should never be the only factor to consider when choosing a home loan. VA Refinance Home Loan Miami Fort Lauderdale Florida
With a wide range of lenders and loans to choose from in Miami, chances are you may be able to secure a more competitively priced loan Miami with a different lender. Or, you may be paying for features you don’t need or use on your current loan Miami. If you think you’re paying too much, contact an expert Aussie Mortgage Broker, who can compare hundreds of loans to see if you could save money by va refinance loan.
This guide is designed to provide information to help you understand what is involved in va refinance loan your home loan in Miami – and decide whether it is the right step for you. If you’re unsure, it can help to speak with someone you trust, like friends, family members or an expert
The best time to va refinance loan Miami depends on many things. These include: the interest rate difference between your existing mortgage rate and the new mortgage, current interest rate, closing fees for va refinance loan Miami, how long you plan to stay in your home, your tax bracket, your lender, and even your local housing market. VA Refinance Home Loan Miami Fort Lauderdale Florida
You may be a VA refinance loan candidate if you are paying at least two percentage points above the present interest rate. For example, if you are currently paying 12% interest on a $60,000 30-year mortgage, your monthly principle and interest payment run $617.16. By va refinance loan the same mortgage at a 10% rate, your payment would be $526.56, a $90.60 savings. Property taxes and insurance cost will remain constant even with a lower interest rate. Since there are settlements or closing costs for va refinance loan Miami, you should consider the 2- percentage-point spread as the minimum. This spread enables you to recover the closing costs through savings and interest payments, normally within two to three years.
If you plan to live in a home longer, you may consider va refinance loan Miami with a difference smaller than 2%. On the other hand, if you have to pay mortgage “prepayment penalties,” you might decide to wait for a larger difference than two interest percentage points. Closing Costs Since most lenders handle va refinance loan as a new mortgage, there are charges that are usually incurred. These are likely to include: a loan origination fee (approximately 1 percent of the loan amount); discount points (usually 0 to 5 percent of the loan amount); an application fee (between 0 and $250); an appraisal fee ($100 to $350); title examination (approximately $250); title insurance for the lender (approximately $3.50 per $1,000 of the loan); a land survey (about $150); a credit report (approximately $50); document preparation fees (about $10); and legal fees including notary and recording fees (at least $250). VA Refinance Home Loan Miami Fort Lauderdale Florida
Special attention should be given to discount points which are an up-front fee collected by the lender with each point equaling one percent of the loan amount. Charging points is a technique lender use to adjust interest rates. The lower the interest rate the more points you normally pay. Many lenders routinely offer two or more choices of point interest rate combinations. For example, you may be offered a choice between an interest rate with two points or a half a percent higher with no points. Each point you pay will probably lower the interest rate by the overall value of the loan Miami between 1/8 to 1/4 of one percent. If you decide to va refinance loan a $55,000 mortgage at 9.5 % with 2 discount points, be prepared to pay $1,100 as a fee to the lender. VA Refinance Home Loan Miami Fort Lauderdale Florida
Consider any prepayment penalty applied to your existing mortgage. A prepayment penalty is the percentage of the old loan you must pay if you pay off the loan early. Generally, prepayment penalties only apply to the first five years of the loan Miami life. The penalty may start at 5 % of the loan if you pay it off in the first year, 4 % for total payment the second year, and so on until after the fifth year when no penalty normally applies. Calculate your break-even period, the time it takes to recover the closing costs and begin to save money from the lower payments. VA Refinance Home Loan Miami Fort Lauderdale Florida
To do this, you must secure from the lender the amount of the closing costs, the amount of the monthly payment for a mortgage you are considering and the amount of the prepayment penalties (if any) for your existing mortgage. Divide the total cost (including the closing costs, points and prepayment penalty) by the reduction in your monthly payments if you were to va refinance loan. For example, if va refinances loan Miami a mortgage requires $2,500 in closing and prepayment costs, but you would save $180 a month in mortgage payments, the break-even period is about 14 months ($2,500 divided by $180). VA Refinance Home Loan Miami Fort Lauderdale Florida
Tax Considerations and Va refinance loan Miami, There are three tax considerations. First, paying a lower interest rate on your mortgage means you will have less interest to deduct on your income tax return. That of course, will increase your tax payments and decrease the total savings from a new lower interest mortgage. The lower your tax bracket, the longer it may take you to recoup the cost of va refinances loan Miami. The second consideration is that discount points and the loan origination fee (if it is for general processing costs only, not specific costs such as a title search) are usually tax deductible. The Internal Revenue Service requires that interest points paid in advance for va refinance loan cannot be deducted all at once in the year you va refinance loan. VA Refinance Home Loan Miami Fort Lauderdale Florida
They must be spread over the life of the mortgage. The IRS does allow you to deduct the points immediately if the proceeds of va refinance loan are used to pay for the substantial refurbishment of your home. Be sure to check with the IRS to see if any new rulings have been released as additional regulations concerning va refinance loan may be issued. The third consideration is the 1986 Tax Reform Act has important implications for the va refinance loan decision: mortgage, interest, and points remain deductible, but you may be in a lower tax bracket. This could make shorter-term mortgages such as the 15-year mortgage more desirable, especially to homeowners who are in tax brackets of 33% or above. Often in the va refinance loan process, individuals decided to borrow equity from their home. The amount available to be withdrawn is usually dependent upon the appraised value of the home and the loan value ratio you choose. Normally, an individual can va refinance loan up to 80% of the current value of the home. VA Refinance Home Loan Miami Fort Lauderdale Florida
The lender may offer to finance part or all of the closing costs so that you do not have to pay for these costs up front. The points will then be added to the loan balance. Although this may sound good and enable you to va refinance loan with little or no out-of-pocket expense, you will be paying interest on these costs for the life of the loan.
If you decide to va refinance loan Miami for more than the original loan amount and your home has appreciated in value, check the tax code carefully. Generally, you can take the full interest deduction only if the amount of the new mortgage is equal to or below the original price you paid for the house, plus the amount you have spent on “home improvements” and the amount, if any, you have borrowed against your house. For example, if your original home cost $60,000, you added $10,000 of home improvement cost, $4,000 educational expenses, and $1,000 medical expenses, then $75,000 is the maximum mortgage amount with fully deductible interest. VA Refinance Home Loan Miami Fort Lauderdale Florida
Types of Mortgages C A 15-year mortgage is amortized over a shorter period of time, building equity quicker with less interest expense. C A biweekly mortgage payment decreased the length of a 30-year loan by approximately 11 years thereby saving interest expenses. C A fixed-rate mortgage helps reduce the risk of future interest rate and payment increased. C Adjustable-rate mortgages have variable interest rates based on several economic predictors. Some adjustable-rate mortgages permit you to transfer to a fixed-rate mortgage, usually during the first five years of the loan.
Access more – or improved, loan features.
If your circumstances have changed, or if you’ve had your home loan for a few years, refinancing can offer you the chance to take advantage of more flexible features. An expert Aussie Mortgage Broker can advise on the features best suited to your needs, but some money saving features to look for are: Flexible repayments
– the option to pay a little extra off your loan when you have some spare cash helps you cut time and money from your loan Redraw
– lets you withdraw any extra repayments if you need the cash. Look for a loan offering free redraws that can be arranged over the phone or online Flexible rate options
– switching your loan between a variable rate and fixed rate, or splitting your loan between the two helps you manage your mortgage in line with interest rate movements Portability
The interest rate on a home loan is usually far lower than the rate on other types of credit. This lets you save on interest charges and helps you pay off the debt sooner. However, debt consolidation can turn a short-term debt – like a personal loan, into a long term one (your mortgage). Unless you aim to pay off the new, bigger home loan as fast as possible, consolidating your debts could mean paying more interest in the long term. VA Refinance Home Loan Miami Fort Lauderdale Florida