It’s a given that money is not easy to come by nowadays as practically the whole world is still reeling from the impact and devastation left by the decline of the world economy. Investments have increasingly become trickier and good paying jobs are so much more elusive than ever before.
As such, it gets a lot more challenging to even pay the interests on debts and loans let alone paying off the principal. Therefore, it becomes extremely important to cut costs or save wherever possible and refinancing through FHA loans is one very viable alternative.
The five most influential factors why you should seriously consider FHA refinancing are:
Consolidating your debts to effectively pay it/them off at lower interest rates is probably the most important reason of all. Credit card loans, which have the highest interest rates around, can be fully paid off. The same can be said of student and car loans. When these are all consolidated through an FHA loan, you would have a bigger opportunity to start saving big.
2. Extend the terms of repayment
Refinancing using an FHA loan allows borrowers a longer period of time to pay off their monthly obligations.
3. Low interest rates
Lightly mentioned in number 1, it would be of great advantage to collate all outstanding debts which have varying interest rates, into one monthly repayment obligation. Doing this through an FHA loan literally guarantees you a low interest rate on a longer repayment term. FHA 30 year fix rates are currently at all-time historic lows!
4. Fixed rates
To have a fixed monthly rate on your mortgage, which and FHA loan allows you to do, provides the borrower the opportunity to manage personal finances more accurately. Variable rates simply do not allow this to happen at such a degree.
5. Switching lenders
There are many advantages made available to the borrower when he/she switches lenders such as flexible term on loan repayments and various other options that can be greatly beneficial as well. You would have to carefully compare options before deciding.
Overall, FHA refinancing needs a little foresight before being undertaken. However, consider the options of not having to refinance your loans or debts; you would have to continue making different payments on a monthly basis and would have to keep track of a lot of details on each of those obligations. You would have to be wary of fluctuating interest rates, keep track of due dates to avoid expensive penalties and, perhaps the most difficult, try to manage all your finances to maintain a good credit score.
FHA Mortgage Source is Florida’s leading FHA loan resource. Please call us at ph: 800-743-7556 or submit the quick Info Request Form on this page.
FHA – Florida 2020