Guide to Refinance, Mortgage,
& Home Equity Loans in
Titusville, Florida (FL)

Titusville may be one of the last “undiscovered” places in Florida. Located an hour’s drive from three metropolitan areas, it retains the peace and serenity of a small resort town. Although you expect Florida coastal towns to be full of senior citizens, Titusville is full of children. Over a quarter of the homes have children under the age of 18 living in them, and residents say that church and the school are the center of the community.

Titusville sits on the Indian River Lagoon, which is part of the Atlantic Intercoastal Waterway. If you like the beach and wildlife, you can visit the Merritt Island Wildlife Refuge, the Great Florida Birding Trail or the Canaveral National Seashore. You’ll see wildlife like sea turtles, manatees and many kinds of birds.

If you prefer more action, you can drive 45 minutes to Daytona or 25 minutes to Orlando and Disney World. There’s never a lack of things to do around Titusville; you can even watch space shuttle launches from your front porch.

Titusville homeowners enjoy a reasonable cost of living, low unemployment and affordable housing costs. At the same time, the value of homes has increased enough in recent years to increase a homeowner’s equity pretty substantially.

If you are one of those homeowners, you may want to take advantage of that equity increase and refinance or get a home equity loan. Or, perhaps you’re interested in buying a home and looking for mortgage financing. Whichever home financing option you need, there are several types of mortgage to choose from in Titusville.

Fixed Rate Loans

Fixed rate loans are the traditional mortgages our parents took out. They are a good buy right now because interest rates are pretty low. With a fixed rate mortgage, you pay the same interest rate for the life of the loan. They are predictable and secure; your house payment will never change.

Adjustable Rate Loans

Adjustable rate loans have been very popular in recent years because interest rates were falling. An adjustable rate mortgage (ARM) or variable interest loan has an interest rate that is tied to some kind of financial index. If the index changes, so does your interest rate. This works in your favor if interest rates go down. If they go up, so does your interest rate and your house payment. Most of the loans that people call “adjustable rate” today are actually hybrid loans.

Hybrid Loans

A hybrid is actually two loans; one fixed rate and one adjustable rate. They are nearly always fixed rate for the first period of the loan and then convert to an adjustable rate mortgage.

Hybrid loans are very attractive to first-time or younger buyers because the initial fixed rate portion of the loan may have a lower interest rate than the prevailing fixed rate. That can make it possible for people to get into a home now, anticipating that when the loan converts to an adjustable rate, their income will have gone up and they will be able to afford the higher house payments. Some plan to refinance to get a better interest rate before the initial period expires.

Interest-Only

With the cost of housing increasing much more rapidly than wages, owning a home had become an unachievable dream for a lot of people. Lenders made homeownership possible for some by offering “interest-only” hybrid loans. During the initial period of these loans, you can elect to make interest-only payments; that is, your payment is equal to that month’s interest. You don’t pay anything on the principal until the loan converts.

An interest-only loan isn’t as bad as it sounds, and it has enabled more people to buy homes. You don’t make any progress on the loan itself for the first few years, but you don’t lose ground, either. It’s no worse than paying rent except that your payment will increase significantly at the end of that introductory period.

Option ARM

An option ARM gives the homeowner a choice of payments during the initial loan period. Each month, the homeowner can choose a minimum payment, an interest only payment or a “fully indexed” payment. A fully indexed payment is the normal, full payment that someone with a traditional hybrid loan would be making.

The minimum payment is less than an interest-only payment and the unpaid interest is added to your loan principal. This is called “negative amortization,” which means that your loan gets bigger, not smaller. The danger with an option ARM is that you could wind up owing more than your home is worth.

Whatever type of mortgage suits your needs, we can help you find it. Simply complete the form at the bottom of this page, and one of our agents will contact you.

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