Florida Mortgage

Are you wondering if you should refinance your Florida mortgage? Refinancing your mortgage can seem like a good idea when the interest rates drop, but there are many aspects to consider. Income taxes, closing costs, and other items are also affected when you refinance.

It isn’t hard to figure out that lower interest rates mean more money in your wallet. Yet, how low do the interest rates on your Florida mortgage have to be in order to justify refinancing? A good rule of thumb is that the interest rates be at least 2% points below your current mortgage rates.

One reason you want to allow that 2% cushion is to cover the closing costs and other fees associated with the refinancing of your Florida mortgage. One alternative to refinancing your mortgage is to renegotiate your mortgage. These are very similar, though technically not the same.

Renegotiating your Florida mortgage is when you are negotiating with your current mortgage holder for a lower rate. This may not be as low as the current rates or the rates that you may not be offered by other companies. However, the rate may be lower in the end due to the addition of closing fees which may not be charged through a renegotiation with your current mortgage lender.

Another aspect that you need to consider is the affect on your income taxes. Lower interest rates mean lower deductions. Lower deductions mean higher income taxes. These higher income taxes may be offset by the lower amount of your mortgage but you do need to take into consideration all of the facts and figures.

Visiting with your accountant may answer many of your questions regarding the refinancing of your Florida mortgage. You can also visit the IRS’s website where you can find information on taxes and your Florida state website where you can find information on Florida interest rates.



Copyright ©2005 - 2013 Florida Housing Guide