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Tuesday, April 27, 2010

Florida Refi – 3 Best Refinancing Options

With the economy slowly recovering and lenders starting to open their wallets again, now is a great time for refinance. With countless Florida refi deals available you can shop around and find the perfect deal for you. Florida refi rates are among some of the best in the country but you need to be careful because you are still putting your house on the line.

There are several options to choose from when you refinance your home and depending on your personal needs, you can choose one that’s just right for you. Here are the 3 main types of refi deals to look into.

1. Open Mortgage Loan
If you are looking for a safe Florida refi loan then this is it. The fact that its open” means that you can pay it off whenever you are in a position to pay for it. You can pay out this loan anytime and in most cases you don’t have to pay early settlement fees either. This is a great option if you just need an immediate cash injection to see you over a few hurdles. Be sure to have the ability to repay it within the term though.

2. Fixed Term Re-mortgage Loan
While many refinancing loans can run for 30 years plus, a fixed term loan will give you the benefit of settling the loan very quickly. This will allow you to get the burden of the loan off your shoulders very quickly and it can be as short as 1 to 5 years. Obviously your obligations to repay the loan is spread across a much shorter term which will be much more cost efficient in the long term – but its still means you have to pay off the full amount in a shorter time period.

3. Fixed Rate Loan
While a fixed term loan defines the period in which you have to repay the loan, the fluctuations in the interest rate can mess you around. With a fixed rate loan however, it will guarantee you a rate and in that way give you a lot of safety in knowing exactly what your repayments will be. I would suggest that in a turbulent real estate market that this is the safest way to refinance your home.

Some Florida refi agents will work with you to come up with the best solution for you. You should know that there’s always risk attached and since you are putting your house on the line you need to take great care and only deal with the best refinancing agents.