and Home Mortgage Refinancing
Make sure if you are using your refinancing
to pay off a debt or consolidate a loan by getting cash
back at the closing that you are not going to have an
unmanageable increase in your payments. A larger loan
after the refinancing happens to approximately 25% of
borrowers, according to a report by the Federal Reserve.
Read All Home Mortgage Refinancing
Loan Closing Documents ... Closely
Itís important, therefore, for the
consumer to read all closing documents, get all fees
and costs up front before applying for the loan, and
for comparing the new documents to the old ones before
itís too late.
Pay Attention to Home Mortgage Refinancing
Loan Prepayment Penalty Clauses
Another thing to watch for is the prepayment
clause. Not knowing the length of time on your prepayment
limit could cost you a lot of money. Never apply for
a refinanced loan until you know youíre clear of this
charge. On most loans, itís five to seven years into
the life of the loan.
Because requirements for loans vary
from state to state, there may be additional concerns
for your refinancing prospects. Make sure you know the
risks, and have a lawyer review your old and new documents.
Even if your mortgage company says they have a lawyer
on staff, bring your own to the closing if you canótheir
lawyer works for them, so get one who works for you.