South Florida Refi Considerations

By AJ Fanter
Local Lender Columnist
Jan 17, 2007
Considering refinancing your South Florida home mortgage to take advantage of shifting interest rates, consolidate debt, pay for college tuition or make home improvements? Not so fast. You have to understand refi before you can determine whether or not it's worth it for you.

Based on recent reports published by the Florida Association of Realtors® (FAR), the median price of a single-family home in Florida is 27 percent higher than in December of 2004, making it a comparatively good time to consider a refi on your South Florida home.

Before you choose refi, however, know your credit rating and local mortgage interest rates. You should also know how long you will live in your home. If you are planning on moving soon, you may not be able to recover the closing costs of your loan.

To see if the numbers on your South Florida home mortgage refi make sense, compare your old and new monthly payments. Divide the up-front costs of the loan plus any closing costs by the monthly savings you expect to receive. This will tell you how many months must pass before you break even on your mortgage refi. Sound complicated? Don't worry - you can find several easy-to-use home mortgage refinance calculators online.

Source
Florida Association of Realtors

About the Author
AJ Fanter is a freelance writer based in Reno, NV.