Should Florida Homeowners Refinance to Prevent Foreclosure?

Many Florida homeowners are feeling the financial effects of along-term pandemic. If your employment has been affected by COVID-19, you are likely searching for options to stay in your home. Many long-term homeowners have accrued equity in their homes through healthy appreciation in Florida’s robust real estate market. It is possible to refinance a home in order to keep your mortgage current during these difficult economic times. However, financing is not for everyone. It can also come with many fees and costs that impact the value of a refinance to a homeowner. Soon, there will be one more fee to pay.

The federal interest rate has been kept at record lows this year. This is largely due to the economic effects of a prolonged pandemic: in order to infuse any type of cash into the American economy, the Federal Reserve has kept interest rates low to encourage spending. This has resulted in a record number of refinances by homeowners who wish to take advantage of lower interest rates.

This prolonged period of refinancing has led Fannie Mae and FreddieMac (which ensure roughly half the mortgages in the United States) to impose anew fee for refinancing these mortgages. CNN reports that this “adverse market fee” will be half a percent of the total value of the loan. On the average home loan, this will come out to an extra $1400. A few thousand dollars more in fees and costs can drastically change the numbers on whether it is in a homeowner’s financial interest to refinance.

 
Unfortunately, some homeowners are in dire straits due to the coronavirus and have little choice in the matter. The sooner homeowners speak to an experienced attorney about their options for avoiding foreclosure, the better options they will have. The experienced Casselberry and Oviedo foreclosure attorneys at Quattrochi, Torres, and Taormina are here to answer all your questions and help you find the option that is right for you. Call 407.452.4918  or contact us online to schedule your free consultation.