Refinancing has been all the talk again with refinancing rates being less than some homeowners financed rates. However, there are some reasons that refinancing is not a good idea for people. Remember, to each their own and make sure you make the right informed decision for you and your family.

If you have had your current mortgage for a long period of time, you may not benefit from refinancing. This especially holds true if you have had your current mortgage for at least ten years. When you refinance, the payoff period increases (it starts over again) unless you refinance into a shorter loan. For the most part, lower rates are associated with a shorter loan length. So if you choose to decrease the length of your loan, you may wind up saving money. Keep in mind that this would mean your monthly payment would likely be more expensive, so this option may not be one that you can afford.

Another aspect to look at is that when you refinance, your total interest cost may increase. We would recommend you do a cost analysis between what your current mortgage is with your current interest rate and compare it to what your refinanced mortgage may look like. Be sure you look at both your monthly savings and your total, long-term savings. Doing this side by side cost analysis will give you the big picture to show you if it is a financially good idea for you.

What is your credit score like? If your credit score is not sufficient enough for you to qualify for a competitive interest rate, you may not benefit from refinancing at all. If your credit score yields you a good refinance rate, then that is a different story. It would not hurt to at least look into it!

Although this may be common sense, we have to reiterate the fact that it is only a good time to refinance if your savings are more than your cost! Be sure to do your homework and look into everything thoroughly.

No matter which state you live in, there is usually some type of program for a first time home buyer. If you reside in Florida, there are many programs and assistant options available to you! And as with any situation, each situation is a bit different. 

In Florida, there are also some loans that do not quire the typical 20% down payment. Some of these programs require as little as a 3% down payment and a minimum credit score that varies. These loans include but are not limited to: Conventional 97, FHA loan, VA loan, and USDA loan. These options also allow you to use money that was gifted to you or use funds from down payment assistance. 

Florida has what is called the Florida Housing Finance Corporation (also known just as Florida Housing) that helps homeowners find approved lenders. The approved lender will help the homeowner throughout the whole process, along with offering education throughout the way as well. In order to get this type of assistance, you do have to take an education class in order to work with them. The class does not take a long time and you are able to do it online as well. In order to qualify for this type of help you also need to have a minimum credit score of 640. Each county in Florida has a certain limit for the purchase price and income that is set by Florida Housing. Both your home purchase price and income must be less than the limit set forth for each county. Each county has different requirements.

If you are interested in purchasing a home in one of the big cities in Florida, you will find yourself in competition. As you know, the market is hot and very competitive. Do not let that steer you away purchasing a home in one of these big cities…you just have to be strategic about it. There are many resources and education options out there that are available for you! You will not have to go through this without the assistance of others.