Refinancing Your Home - How and Why? - Answering Service Resources

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Refinancing Your Home - How and Why?

Refinancing Your Home - How and Why?

Chances are you may need a little extra money to get some work done around the home or perhaps your current interest rate is 7.5% and the prime interest rate is 6.0% there is a benefit to restart the clock on an existing mortgage and save thousands of dollars over the life of the loan. The first thing you must realize is that refinancing your home can also be tax deductible, meaning that you will receive an extra tax advantage for the closing costs associated with a refinancing no matter what the condition, even in bankruptcy!

The first step of refinancing your home is finding a reputable lender that will get the job done right the first time. Think of refinancing similar to purchasing your home, as the same information is necessary in order to get started. You will need to produce the same documentation that verifies who you are, how much you make and what you currently owe. A reputable finance company will shop your loan around to several lenders and get you an acceptance in a matter of days and in some conditions in a matter of hours.

Once you set the ball in motion, you will have to get your current mortgage holder to provide a statement of payoff that shows how much you owe at this point in time. Your home will need to be appraised in value and an interest rate will be locked in for a period of 60 days. You will be asked to sign several pieces of paper to release this information from the mortgage company. You may also have to turn in the cover page of your homeowner's insurance policy to show the break down of your coverage.

Should all the paperwork be in order, you will be given a tentative closing date by a registered title company. It is the title company's job to make sure that all documentation and title pass from the current bank to the new one at the settlement table. At the close, you will resign your paperwork and title documentation over to a new lender. In some cases, it may be the same lender as the mortgage company that you currently have. Should you have asked for some cash back a check will be presented at this time.

About The Author

Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.

In The News:

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Mortgage refinance rates are the lowest rates, homeowners can get when trying to refinance their mortgages. Simple, isn’t it? Maybe so, but obtaining the ...

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... said in an e-mail message that Tamraz's mortgage "does not qualify" for a refinance for less than the loan's original value and declined to elaborate.
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... mortgage finance giants. Any announcement would come just weeks before the two companies have to refinance $225 billion of mostly short-term notes. ...
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Baytown woman sues lenders, says she was a victim of predatory ...
Houston Chronicle, United States - Sep 4, 2008
Nanette Lewis refinanced her mortgage to get peace of mind. Instead, she says, she got a bait-and-switch, predatory loan and heartbreak. Now far less naive, ...

The Associated Press
Home loan troubles break records again
The Associated Press - 6 hours ago
... said in an e-mail message that Tamraz's mortgage "does not qualify" for a refinance for less than the loan's original value and declined to elaborate.

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Bloomberg - 2 hours ago
Interest rates increased and home values fell during the period, prompting more Americans to walk away from houses they couldn't refinance or sell. ...

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CNBC, Englewood Cliffs - 4 hours ago
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Newsday, NY - 8 hours ago
A come-on letter from someone purporting to be a mortgage broker and offering to help her refinance captured her eye. "They said they could get me good ...

Mortgage applications rose 7.5% last week: MBA
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Refinance applications increased an unadjusted 2.1%, compared with the week before, according to the Washington-based MBA. The MBA's government purchase ...
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Southmoreland's refinancing offers savings
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