Homeowners opt to refinance their mortgages for a variety of reasons, from taking advantage of a lower interest rate to combining other debts into their mortgage. No matter why you choose to refinance, it’s important to know that the process is a little different than buying a home.
First difference? The whole thing will be easier. Because there is no seller, you’re working directly with the lender throughout the process. There are fewer people and moving parts involved.
Your interest rate will typically be lower because you typically won’t need help with closing costs. In fact, you can roll the closing costs into your refinanced loan, using the equity you’ve earned to pay for them.
If you’re getting cash back from your refinance, you won’t get it back on closing day. That’s because you get three days to consider the transaction you’ve just made and decide whether you want to continue with the new loan. Funds can be released to you after this waiting period.
One thing that doesn’t change with a refinance? You’ll need a reputable title company to conduct a new title search (the lender wants to make sure there are no liens or judgements against you) and steer the transaction. Foote Title Group can help you through the refinance process – give us a call today!
