Refinancing Process
Signing Loan Papers
Your lender will call you when everything is approved and make an appointment for you to come in and sign your new papers. Usually this is done at the title company's office but can be arranged at other offices if necessary. Depending upon questions you have this process can take anywhere from half an hour to two hours. Usually the papers require your signature several dozen times, so have your fingers and wrist all warmed up!
Recession period.
After you sign these ... Read More »
Mortgage Application
When you're ready to forward with your application your lender will send it to you or you'll be asked to come into the bank to sign everything. Your application will be tailored specifically for the loan option that you choose but you still should read it carefully before signing. Make sure you understand all terms and conditions and don't hesitate to ask questions before signing. You can also have a lawyer look at this application if you so desire.
Processing.
Processing is ... Read More »
Refinance Calculations
What are the fees you would need to pay as part of your closing costs? How would your points add up? What are your prepayment penalties? All of these are the cost of refinancing.
To see if the costs are worth the change, you then need to figure your new monthly payment once your interest rate changes. How much are you saving every single month?
The total costs should be divided by your monthly savings and this will tell you how many ... Read More »
Understand Your Mortgage Terms
Read through your mortgage carefully.
What are the terms of your mortgage as far as refinancing is concerned? What are the prepayment penalties?
What about your interest rate - is it fixed or about to adjust?
What are your caps as far as your interest rate is concerned? How do these caps affect your interest rate
Quite a bit of the information you'll need to decide if refinancing is right for you will be in your mortgage right now. If you're not sure of ... Read More »