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
principle. 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:
Debt consolidation can effectively
pay debt 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.
Extend the terms
Refinancing using an FHA loan allows
borrowers a longer period of time to pay off their monthly obligations.
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!
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.
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, 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 local FHA
home loan leader. Servicing all of Florida including Jacksonville FL,
Gainesville FL and Tallahassee FL please call us at 904-302-6060 or visit us at www.FhaMortgageSource.com for more information.