Are You Thinking About Refinancing Your Home

Are you​ Thinking About Refinancing Your Home?
When you​ refinance your home,​ you​ get a​ new loan to​ replace the​ one you​ already have .​
You might do that to:
Get a​ lower interest rate
Combine or​ pay off bills
Get money for home improvements or​ repairs
Things to​ consider before you​ refinance
Refinancing to​ get a​ lower interest rate will probably save you​ money if:
The new interest rate is​ 2% or​ more below the​ rate you​ pay now; and
You plan to​ stay in​ your home for three or​ more years .​
If you​ refinance to​ consolidate bills and pay off debts,​ your total monthly payments may be less than what you​ pay now .​
However,​ your monthly mortgage payment will be higher .​
Be aware that if​ you​ get behind on​ your monthly mortgage payment,​ you​ can lose your home .​
If you​ just need money for home repairs,​ you​ may qualify for a​ low interest government loan.
How do I​ find a​ lender?
Banks,​ mortgage companies and credit unions are the​ most common lenders .​
Here are some tips for finding a​ lender:
Contact three or​ more lenders .​
Look for a​ loan with the​ lowest interest rate,​ points and fees .​

Be sure the​ lender is​ licensed and in​ good standing .​
Call the​ Department of​ Corporations at​ (800) 347-6995 .​
Mortgage loan brokers work with many lenders to​ help you​ find a​ loan .​
to​ be sure that they are licensed with the​ Department of​ Real Estate,​ call the​ local office .​
How much will it​ cost to​ refinance?
Loan charges will vary from lender to​ lender .​
Loan charges include points and fees .​
Each point is​ equal to​ 1% of​ the​ loan and is​ paid to​ the​ lender or​ your loan broker .​
Be sure to​ shop around and negotiate for the​ lowest interest rate,​ points and fees .​
What do loan fees include?
Loan costs may include the​ following fees:
Appraisal
Recording
Title Report

Escrow
Credit Report
Document Notary

Wire Service
Messenger Services
Document Preparation

Loan Origination

Do I​ have a​ right to​ cancel?
Yes .​
From the​ time you​ sign the​ loan papers,​ you​ have 3 business days to​ cancel .​
If you​ cancel,​ your credit report and appraisal fees are non-refundable .​
If you​ are refinancing a​ rental property,​ there is​ no right to​ cancel.
Before you​ sign
Review all loan documents .​

The Truth in​ Lending Disclosure has the​ basic terms and conditions of​ the​ loan .​
The Settlement or​ Closing Statement shows the​ fees you​ are being charged and what accounts are being paid off .​
Everything you​ were promised should be in​ the​ loan documents .​
If you​ do not understand something,​ do not sign .​
Ask for an​ explanation.
Are You Thinking About Refinancing Your Home Are You Thinking About Refinancing Your Home Reviewed by Henda Yesti on August 21, 2018 Rating: 5

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