Clearwater – Tampa Florida Mortgage Refi Guide

Clearwater Florida – Today we are happy to have a guest blogger, Kevin Sandridge, one of our favorite Florida Mortgage lenders (and bloggers) to give you his thoughts on refinancing your mortgage.  I think you’ll enjoy Kevin’s thoughts and style – we hope to have him back often. Let us know your thoughts!

“OK folks, here’s the story: Clearwater Tampa Mortgage Rates are at the lowest point they’ve ever been in nearly 4 years, and Florida mortgage refinances are flooding our offices!

It’s way past the whole “I got myself into a balloon payment or interest only” loan situation. People with excellent credit and what “WERE” decent interest rates are clammoring to take advantage of our present situation.

Normally, when Uncle Ben and “da Fed” lower the base interest rate, Tampa mortgage rates climb.  However, folks are starting to get the point that our Government is pulling out all the stops to make sure the nation’s economy remains solvent – finding a way to make Clearwater home loans more affordable and managable is a key component.

  • Related post: Fed Makes History by Cutting Rate by 3/4 Percent – Markets Rally

As such, Tampa – Clearwater homeowners tied to higher rate adjustable or even conventional fixed-rate mortgages seek refuge in a little something we here in the “High-fangled Florida Home Loan Financial Biz” like to call a Refinance.  (A note to Florida VA Mortage Holders…. call me to ask how I can refinance your mortgage at a rate below 6 percent with NO re-qualification and NO appraisal required!)

When you refinance your Tampa mortgage, what you’re essentially doing is paying off the old mortgage with the proceeds from your new one.  Note – this is not the same as re-fiancee… that’s for another day – and another blog…

Clearwater – Tampa Mortgages – A Little Brush Up

When you take on a Clearwater – Tampa mortgage on your home, you’re establishing a contractual agreement between the lender and yourself.  This contract defines the terms under which the money you borrow for your Florida home will be repaid.  Items covered in this agreement include things like the interest rate you pay, the term – or length of time you have to pay off your loan, and of course, the amount of money borrowed.  You will also notice something called the amortization schedule – a breakout of exactly how many payments will be made over however many months and years – typically ending up at a figure that’s a good bit higher than what you originally borrowed.  Ah, sweet delectable interest… we love you so….  NOT!

Why Refinance Your Tampa – Clearwater Home Loan?

Tampa Bay Florida home owners refinance their home loans for various reasons.  Some want to take cash out against their home’s equity for things like college expenses, home repairs, debt reduction, etc.  Many Tampa – Clearwater home owners today are just using the refinance option to reduce the life or overall amount payable on their loans – choosing to leave the equity they’ve worked so hard to establish right where it is.

Regardless of the reasoning behind your mortgage refinance, it’s likely that at minimum, you will choose to do so in order to take advantage of a better interest rate, negotiate more attractive loan terms (the duration of your loan), or both.  I typically tell my clients to consider refinancing when rates drop around 1.75% or more below their present mortgage rate.  In some cases I play things a little closer to the vest and suggest my clients wait until they see a drop of nearly 2.0%.  While others may feel this is a bit conservative – I just want to be sure that my clients truly benefit from the refinancing process.

There is no rule that limits how many times you can refinance, nor is there a foolproof way to determine whether or not a refinance makes sense.  In general, if you can reduce your monthly payment while limiting your closing costs, a Tampa – Clearwater home loan refinance may be right for you.  You definitely don’t want to become a “serial refinancer,”  – which leads into a process known as “churning.”

Recap:  Some Basic Reasons to Refinance Your Clearwater – Tampa Mortgage Include:

  1. Converting from an ARM into a fixed rate mortgage (or vice versa)
  2. Lowering the interest rate by at least 1.75 to 2.00 percent on your existing conventional mortgage (again, I tend to be conservative)
  3. Taking funds to use for another purpose by paying off third-party debts or for cash
  4. Extending the life of your Tampa mortgage from 15 to 30 years to achieve payment relief

Parting Shot Thought

I leave you with a parting gift… a clip from the movie Caddyshack – undervalued by many for its wisdom-filled script!  This one is where Carl Spackler, the hapless and somewhat devious Groundskeeper tells a young caddy about when he was a “jock” in the Himalayas for the Dali Lama and asked His Holiness for a tip…

Ahh.. It’s a timeless story, really. And, if you fortunate enough to have the pleasure of sitting on the veranda of your favorite Tampa Bay Luxury Home looking over a nice ocean view and sipping the adult beverage of your choice as you ponder it – well, then… you are indeed fortunate. Just make sure you’re not paying too high of an interest rate on that Luxury home!

I assure you that in almost every case… refinancing your Tampa – Clearwater home will prove to be a simpler and less expensive process than than you experienced purchasing it. Oh, and the stack of paperwork you sign at closing will be much smaller – which, in the words of Carl Spackler from Caddyshack… is nice.

As always, seek the advice and wise counsel of an experienced Florida mortgage broker to help you determine whether refinancing your home is the right move for you and your family.

If you’re looking to refinance of your Florida mortgage, please give me a call at 863-604-3019, or contact me via email at kevin.s@sigfunding.com. – Kevin Sandridge”

Thinking of Buying or Selling Tampa Clearwater Real Estate

If you have been thinking about buying or selling a home in the Clearwater St Petersburg Tampa area…

Contact us for a FREE quote and to find out your Tampa Mortgage options and you can search all Tampa St Petersburg and Clearwater homes for sale right now..

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Copyright © 2008 Jack and Cyndee Haydon, Clearwater REALTORS and your Clearwater Real Estate Consultants specializing in Clearwater St Petersburg Tampa Real Estate and may not be copied, reproduced, distributed, transmitted, displayed or published.

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5 Comments

  1. This is an excellent article, I am sure will be helpful for plenty of people around. I would like to see Kevin posting here often. Merry Christmas and a Prosperous New year 2009!

  2. It looks like the lower rates have started to get buyers looking for houses. Mortgages are tough to get I understand Kevin is good. Hopefully he can help!

  3. As for refinancing goes, isnt it hard to do so when the values have dropped so drastically? Are there any programs out there for self employed people who can prove their income on bank statements?

  4. one of my friend asked me to read your mortgage article.Thanks for the Info.Economic slowdown is taking on a heavy toll on most of us.hope to see good times again.

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