When it comes to first time home buyer programs, there are a number of options to help you get the house of your dreams. If you currently have an FHA loan Florida lenders offer, you may be thinking about refinancing that mortgage to get more favorable terms. Pioneer Mortgage Funding, Inc in Lake Mary, FL, can help you understand the options available to you, and our team of experts can give you advice on the best program and terms for you. Keep reading to learn more information.
Refinancing During Current Times
Given the current state of the country during this pandemic, refinancing mortgages has become an extremely popular choice with homeowners. Since mortgage rates are dropping significantly as a homeowner, you should consider refinancing your loan to gain more favorable terms and a lower monthly rate. If you are currently in an FHA mortgage loan, it may be a good idea to think about refinancing and looking into the options available to you.
Everything You Need to Know About First Time Home Buyer Programs and Refinancing
Typically, people decide to refinance their home for a few reasons, such as the need to get a lower monthly payment, a lower mortgage rate, a desire to cash in on their home’s value, or a plan to upgrade and improve their property. It may be time to consider a change from your FHA loan Florida homeowners!
If you are like many American buyers, you may have gotten your first mortgage with the Federal Housing Administration or FHA. This is a popular choice for many new homeowners because FHA loans require minimal down payments and fair to good credit scores. However, as your situation changes, you may be thinking about refinancing your loan, especially during the COVID-19 pandemic, since rates are extremely favorable.
If you are not ready to get out of an FHA loan, you can refinance from one FHA loan to another with a different lender who has better terms. You also have the option to refinance your FHA loan to a conventional loan, but in order to do this, you have to meet the minimum requirements. You should consider this option if you have at least 20 percent equity in your home because it will allow you to remove the lifetime private mortgage insurance, however, if you do not meet that equity minimum for the conventional loan, you would still need to continue having private mortgage insurance until you reach a loan-to-value ratio of at least 78 percent.
Before you decide to refinance your mortgage, you should sit down to think about why you are looking to refinance. The reason this is an important part of the process is that there are different loan types available for different projects or goals. For instance, if you are looking to make improvements to your home, you could talk to a lender about an FHA 203 (k) Rehabilitation Loan.
Contact Us
Pioneer Mortgage Funding, Inc in Lake Mary, FL, has a team of mortgage broker experts that are doing more than just providing first time home buyer programs and refinancing options. We pride ourselves in helping make a difference in the community. If you have been thinking about buying a new home or refinancing the FHA loan Florida lenders gave you, call or visit us today to find out how we can help!
