Refinance Loans

Pelican Bay, FL Refinance Loans

Refinancing a mortgage in Pelican Bay, FL involves taking out a new loan that replaces an existing mortgage, or getting a new loan to pay off both a first and second mortgage. There are many reasons to refinance in Pelican Bay, FL including locking into a lower interest rate, cashing out the equity in your home, or switching from an adjustable rate mortgage to a fixed-rate loan.

Refinancing in Pelican Bay, FL usually requires having little monthly debt and very good credit, as well as money for closing costs.

Why Should You Refinance Pelican Bay, FL

Pelican Bay, FL Cash Out Refinance

One reason to refinance your Pelican Bay, FL mortgage is to cash out of your equity. This requires having a sizable amount of equity so you can refinance into a loan with a higher balance. This may be a good option if you want to pay off debt, pay for a large purchase, or pay to go back to school, for example. Cash out refinance loans in Pelican Bay, FL typically have higher interest rates than regular refinance loans, but the rate will still be lower than most loans and credit cards. Remember that you will pay more in the long run, however, you will be paying on the loan for 15 to 30 years and the refinance can turn unsecured debt into secured debt.

Lower Interest Rate in Pelican Bay, FL

The most popular reason to refinance a mortgage in Pelican Bay, FL is to lock into a lower rate. If you want to take advantage of lower rates and lower your monthly mortgage payment, remember that your current interest rate should be around 1% higher to make it worthwhile, as you will pay closing costs on a refinance.

Cash Out Refinance Pelican Bay, FL

Refinance to a Fixed Rate in Pelican Bay, FL


If you have an adjustable rate mortgage (ARM) that is about to reset, or you have a loan with a balloon payment, you may want to refinance into a fixed rate mortgage. You can also refinance in Pelican Bay, FL to turn a fixed loan into an adjustable rate mortgage if you wish.

Pelican Bay, FL Downsides of Refinancing

While refinancing can definitely be worth the time and cost, there are disadvantages to refinancing your mortgage. Always check the terms of your current mortgage to make sure you will not be charged a penalty for refinancing. If your loan has a prepayment penalty and you pay off the loan within the first two to five years, you may incur a high fee such as a flat fee, a percentage of the outstanding balance, or an entire month's interest, as the penalty.

Remember, you need to pay closing costs as well. It is important to use a refinance calculator to make sure it is worth it to refinance. A calculator can show you how long it will take to make the refinance pay off. As an example, you can expect to pay around $3,700 out of pocket in closing costs for a $200,000 refinance. Compare the savings you will enjoy each month to your closing costs to see how long it takes to break even.

Refinance to a Fixed Rate Pelican Bay, FL

How to Refinance in Pelican Bay, FL

A refinance in Pelican Bay, FL works just like getting an original mortgage including verification of your income, credit, and employment. You will also need to decide which type of loan you want to refinance into, whether it is a 15-year fixed loan or an ARM.

It is not necessary to refinance with the same lender. You may wish to use a mortgage broker in Pelican Bay, FL to help you get the best rate on your loan. You will need to have a home appraisal after you submit your application to make sure you have enough equity to justify the loan amount.

Underwater Loan Refinance in Pelican Bay, FL

If you owe more than your home is worth, you can still refinance your Pelican Bay, FL mortgage. If you have less than 20% equity or you are completely underwater, the following may be options for you:

How to Refinance a Loan Pelican Bay, FL

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