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REFINANCING
The Law Firm Of Richard T. McCarthy provides the expertise and personal service needed to assist you in making the refinance of residential real estate simple and painless. Provided here are some basic answers to the most common questions asked during the refinance of a home.
Please feel free to call our office about your real estate needs.
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A refinance is where a home owner replaces one mortgage on real estate with another mortgage. This is typically done to obtain a more favorable interest rate or financing terms. However, it may also be due to the owner cashing out equity in his/her home to undertake debt consolidation, pay for college, purchase a second home, etc.
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The attorney will review the loan commitment, order the title search and survey (if applicable), process the file for closing, conduct the closing, discharge the old mortgages, record the new mortgage and send you and the lender a post closing package.
There are many new nontraditional loan products in the market place these days with terms, provisions and penalties which may not be beneficial to the borrower. Our office will alert our clients to any concerns about the same.
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Your lender will require that a new title search and 'lender' title insurance policy be issued to it. If you have your old policy available, our office can arrange to obtain a re-issuance rate which is a discounted title insurance premium rate.
Whether or not you will need a new survey depends upon the requirements of your lender. Many lenders will accept your current survey if it is not too old and there has been no material changes to your property since the survey was done. Our office can prepare a document known as a Survey Affidavit of No Change so that you can use your current survey.
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This is an overview and 'guestimate' of all closing costs to be anticipated by the borrower. The lender is required to provide this estimate to the borrower shortly have the borrower has applied for the mortgage loan. It is an estimate only. It has been out experience that Good Faith Estimated costs are often lower than actual costs. In some cases, the estimated costs on these forms have not been updated in years.
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Yes, you come to our office at which time we review, explain and sign all of the mortgage documents. Most refinances have a 'three day right of rescission' period. This means that you have three business days after you have signed the loan documents to change your mind and terminate the loan. As a result of the three day right of rescission, the loan is not actually funded until the three business days have elapsed. Once the loan is funded, our office will pay off your existing mortgage, record your new mortgage, return the original closing documents to the bank and forward a set of closing documents to you.
If it is a 'cash out' transaction where you are receiving money, you may pick up your check after the three day rescission period expires when the loan has been funded.
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