There are several reasons why people may choose to refinance their home loan. Refinancing at a lower interest rate could lessen a homeowner’s monthly mortgage payments. In some cases, it could enable a homeowner to cash in some of the equity accrued in the property or shorten the length of the mortgage. Still others may decide to refinance their home loan to assume a different type of mortgage to better meets their needs. Read on to learn some of the primary factors surrounding home refinance loans.
Closing Costs for Refinance Loans
Even when refinancing an existing mortgage, homeowners can expect to pay closing costs at the time of settlement. With refis, however, the closing costs are typically wrapped into the loan. Given this factor, homeowners may not be required to bring payment to the closing table unless they choose to pay closing costs and avoid having this amount factored into their monthly mortgage payments. Visit our previous post to learn more about closing costs for a mortgage refinance.
Closing Timeframe for a Mortgage Refinance
It can be challenging to estimate the time it takes for a mortgage refinance to close, as this will vary according to the lender and will depend on each individual lender’s refinance process. Factors like home appraisals may be necessary, which could impact the time it takes to close.
Closing Disclosure Forms for Refis
A Closing Disclosure (CD) form will be submitted by the mortgage lender to the borrower at least three days prior to closing. This form outlines the financial details surrounding the borrower’s responsibility as it pertains to the closing costs, amount of the loan, loan interest rate, repayment of the mortgage, and other financial specifics. It is important to review this document in its entirety and very carefully, and to reach out to the lender right away with any questions, concerns, or discrepancies.
Refi Closing Day
Whatever the reason for a mortgage refinance might be, it is vital to be fully prepared on closing day. A valid government-issued ID will be required in order to close. Consulting the title agent or attorney conducting the settlement on what to bring and what to expect can help ensure preparedness on closing day.
To learn more about the process for a refinance closing, contact the team at Linear Title & Escrow today.