A real estate refinance may allow you to obtain a lower interest rate on your mortgage, move an adjustable rate mortgage to one with a fixed rate, or to borrow additional funds by taking advantage of the equity you’ve built up in your home. Additionally, refinancing your mortgage can help you pay off your home more quickly than you would have been able to under your original mortgage. If you have several mortgages, refinancing may also provide you with a way to consolidate these loans into one. However, before you make the final decision to do a real estate refinance, you should ask yourself:
- How much lower your payments will be on a monthly basis.
- How much it will cost to pay for fees, appraisal expenses, and other closing costs.
- How long it will take for the money you saved on interest payments to cover what you paid for closing expenses.
- How much money you will save over the entire life of the new loan.
- If you will need to make an early payment fee on your existing mortgage.
It is important to keep in mind that while refinancing may be a good solution overall, it is a process that should be approached with careful consideration. Before you start the real estate refinance process, you should speak with one of our attorneys at Leonard & Moore, PLLC. We can help you understand what the new mortgage documents entail. Additionally, we can also review your loan documents and check for any discrepancies or conditions of which you should be aware.