When the lender approves your loan, your representative will tell you where the closing will take place, when, at what time and who should be present. You are required to see the HUD-1 statement the day prior to closing so you can review the costs.
After the closing, please keep in mind you do not automatically receive your funding. There is a three day rescission before funds are released. During this time, you may reconsider your decision. This will be explained at closing and the documents you receive should be stored in a safe place. You may need them at a later date. (Please continue to browse our site for other helpful hints.)
SOME REASONS FOR REFINANCING
This list is by no means exhaustive –it is only for illustrative purposes.
Saving money on a monthly basis should be your goal.
1. Getting cash out to pay off credit card debts
2. Getting cash out to pay off student loans
3. Getting cash out to purchase a car instead of having payments
4. Getting cash to start a new business venture
5. Getting cash out for a remodeling project
6. Getting cash out for an investment or retirement fund
7. Reducing the term of my mortgage from a 30 year to a 20 or 15 year
8. Change my mortgage from an adjustable rate mortgage to a fixed rate
9. Lowering the current interest rate
NOTE: DETERMINE IF IT’S WORTH REFINANCING. For people just looking to refinance to get a lower interest rate, take the closing costs for the loan and divide it by the amount of monthly savings you are receiving for the new mortgage. The answer will give you the amount of months it will take to recover the cost of refinancing.
Example: Closing Costs = $5,403 and you will be saving $127.23 per month by doing so.
it will take (5403 ÷ 127.23) 42.47 months to recover the cost of the refinance. After that month passes, you will be saving $127.23 a month for the life of the loan (or how ever long you are in the property).