7 Refinancing Myths That Are Costing You Money (Florida Edition!)
Hey Florida homeowners! Let's talk about refinancing—specifically, all the myths and misconceptions that might be keeping you from saving thousands of dollars on your mortgage.
After 20+ years in the mortgage business here in Florida, I've heard every myth, excuse, and piece of bad advice imaginable. Today I'm busting the seven biggest myths that might be costing you money right now!
Myth #1: "I Need to Wait Until Rates Hit Rock Bottom"
The Truth: Trying to time the market perfectly is a losing game.
Here's the reality—if you wait for the absolute lowest rate possible, you'll probably miss out on months (or years!) of savings while you're waiting. Interest rates fluctuate based on countless economic factors that nobody can predict perfectly.
If refinancing saves you money today compared to your current mortgage, that's money in your pocket every month you delay. You can always refinance again if rates drop significantly more (though there are diminishing returns after a while).
Action Step: Instead of waiting for the "perfect" rate, calculate if today's rates would save you money. If yes, move forward!
Myth #2: "Refinancing is Only Worth It if I'm Saving 1% or More"
The Truth: This old rule of thumb is outdated!
The "1% rule" came from an era when closing costs were higher and processing times were longer. Today, with competitive closing costs and efficient processing, even a 0.5% rate reduction can be worthwhile—especially on larger loan amounts.
On a $500,000 mortgage, a 0.5% rate reduction saves you about $2,500 per year. If your closing costs are $7,500, you break even in three years. Planning to stay longer than that? You're winning!
Action Step: Calculate your actual break-even point instead of relying on old rules of thumb.
Myth #3: "My Credit Isn't Good Enough to Refinance"
The Truth: Your credit might be better than you think, or you might qualify for programs designed for various credit profiles.
I've had countless clients who assumed their credit was "too bad" to refinance, only to discover they qualified for excellent terms. Credit scores improve over time with responsible management. If you've been making on-time payments and managing debt well, your score has likely improved since you bought your home.
Plus, we have access to multiple loan programs through CrossCountry Mortgage that work with various credit profiles.
Action Step: Check your credit score (free at annualcreditreport.com) and talk to a mortgage professional about your options. You might be pleasantly surprised!
Myth #4: "I'll Lose My Low Property Taxes if I Refinance" (Florida Specific!)
The Truth: Refinancing does NOT affect your Save Our Homes benefit!
This is the biggest Florida-specific myth I hear, and it stops many homeowners from refinancing unnecessarily. Florida's Save Our Homes constitutional amendment caps annual increases in assessed value at 3% for homesteaded properties.
Good news: Refinancing your mortgage does NOT trigger a property tax reassessment and does NOT affect your Save Our Homes cap. You keep all your property tax benefits!
Action Step: If this myth has been holding you back, you can refinance with confidence knowing your property tax protection stays intact.
Myth #5: "Online Lenders Always Have the Best Rates"
The Truth: The lowest advertised rate often isn't the best deal once you factor in ALL costs.
Those flashy online ads showing ultra-low rates? They often come with:
- Higher points and fees
- Strict qualification requirements (only perfect-credit borrowers qualify)
- Impersonal service that leads to delays and frustration
- Hidden costs that aren't included in the advertised rate
Working with a local mortgage team like ours means personalized service, competitive rates, and someone who actually answers your calls. We're backed by CrossCountry Mortgage (America's #1 retail mortgage lender), so we have institutional resources with local attention.
Action Step: Compare total costs, not just interest rates. And value matters—smooth, timely closings save you money and stress.
Myth #6: "The Paperwork is Too Complicated and Time-Consuming"
The Truth: With the right team, refinancing is way easier than you remember from when you bought your home.
Technology has streamlined the mortgage process significantly. Document uploads are digital, verifications are faster, and communication is more efficient. Plus, refinancing is generally simpler than a purchase mortgage because you're already in the home.
When you work with us, we guide you through exactly what documents you need, why we need them, and how to submit them. No mystery, no repeated requests for the same thing five times.
Action Step: If fear of paperwork is holding you back, schedule a quick call with us. We'll explain the actual process—it's probably easier than you think!
Myth #7: "I Should Wait Until I Have More Equity"
The Truth: If you have at least 20% equity, you're likely good to go!
Some homeowners think they need 30%, 40%, or even 50% equity to refinance. While more equity can qualify you for better terms, you typically only need 20% equity to avoid PMI (Private Mortgage Insurance) and access standard refinancing programs.
Florida's real estate appreciation over recent years means many homeowners have built substantial equity without realizing it. Your home might be worth significantly more than you think!
Action Step: Get a current estimate of your home's value (we can help with this). You might have more equity than you realize.
Bonus Tip: The Best Time to Refinance Was Yesterday, The Second Best Time is Today!
Okay, that's a little dramatic, but here's the point: every month you delay refinancing (if it makes financial sense for your situation) is a month you're overpaying on your mortgage.
If refinancing saves you $300 per month and you wait six months to do it, that's $1,800 you just left on the table. Not to mention the long-term savings over the life of the loan!
So, What Should You Actually Do?
Simple! Have a no-pressure conversation with a mortgage professional who can:
- Review your current mortgage
- Calculate potential savings
- Explain your options clearly
- Give you honest advice about whether refinancing makes sense
That's literally what we do every day at the Corey Johnson Team. No high-pressure sales, no confusing jargon, just straight talk about your mortgage options.
Ready to Stop Leaving Money on the Table?
Give us a call or shoot us an email. Let's figure out if refinancing could save you money!
📧 Corey.Johnson@ccm.com 📞 Office: (561) 295-2001 📱 Mobile: (561) 758-7523 📍 750 U.S Highway One, Tequesta, FL 33469 🌐 www.coreyjohnsonteam.com
Lower rates. Better terms. Greater peace of mind.
Have you been believing any of these myths? Drop a comment below and let me know which one surprised you most! And if you found this helpful, share it with your fellow Florida homeowners who might be missing out on savings! 🏡💰
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