Refinancing

Many Tampa area homeowners continue pay their mortgages on time but would like to take advantage of today’s lower mortgage rates.

Refinancing allows you to pay off existing mortgages and create a new one. If interest rates have fallen, if your credit score has improved, if you expect rates to increase, or if you are looking to switch to a different type of mortgage, then consider refinancing.

Appraisals & Equity

Mortgage refinance could be an option provided you have sufficient equity and strong credit. For many, “sufficient equity” is the challenge. Most lenders will order a appraisal to determine the current market of your Tampa Bay home. In most cases, the new loan cannot exceed 80% of the current market value. If your equity is less than 20%, then you may be required to bring money to close the new loan.

Do The Math

In addition to having 20% equity, refinancing may require you to pay closing costs. To determine if this makes sense, divide the total amount of cash you must bring to closing by your projected monthly savings. The result will show how many months it will take to recoup the investment. Do you plan to stay in the home long enough for this to make sense? See the Federal Reserve Board’s Guide to Mortgage Refinancing.

Government Programs

Are you eligible for the the The Home Affordable Refinance Program? Homeowners unable to refinance with their lender directly may qualify for:

  • The Home Affordable Refinance Program (HARP)
  • Home Affordable Modification Program (HAMP)
  • The Second Lien Modification Program (2MP)
  • The Home Affordable Unemployment Program (UP)
  • The Home Affordable Foreclosure Alternatives Program (HAFA).

As Certified Distressed Property Experts, Annette, Doug and Dale Bohannon have been trained to help you consider all the options. If you or anyone you know might benefit from more information, contact the Bohannons at Coldwell Banker Residential Real Estate in Tampa, Florida for a confidential consultation.