How We Can Help You Refinance Your Home
If you are a homeowner thinking about refinancing a mortgage, you will need to speak with a professional mortgage loan officer to discuss whether refinancing will provide you with a tangible net benefit. You may also wish to consult with your financial advisor if you have one. Homeowners considering refinancing of their mortgage tend to have questions about one of more of the following:
- Interest Rates: One of the primary reasons homeowners consider refinancing is to secure a lower interest rate on their mortgage. They are concerned about whether current rates are lower than their existing rate and if they can save money by refinancing.
- Court Order in a Divorce: Another common reason homeowners refinance their mortgage is to comply with the order of a court in divorce proceedings. For example, the court order may specify which spouse is responsible for the mortgage on the marital home after the divorce. If one spouse is awarded the home, they may be required to refinance the mortgage in their name alone, removing the other spouse from the mortgage obligation.
- Monthly Payments: Homeowners may consider how refinancing will impact their monthly mortgage payments. They want to know if their payments will go up or down and whether the change fits within their budget.
- Closing Costs: Refinancing typically involves closing costs, including fees for appraisal, title insurance, and loan origination. Homeowners should understand these costs and whether they can recoup them through interest savings over time.
- Loan Term: Some homeowners may consider changing the term of their mortgage when refinancing. For example, switching from a 30-year to a 15-year mortgage could lead to higher monthly payments, but faster equity build-up and interest savings over time.
- Equity: Homeowners often consider how much equity they have in their home and whether refinancing is the right option for their circumstances.
- Adjustable to Fixed Rate: Some homeowners may have adjustable-rate mortgages (ARMs) and want to refinance to a fixed-rate mortgage to have more predictability in their monthly payments.
- Future Plans: Homeowners also consider their future plans when refinancing. If they plan to sell their home in the near future, they may need to understand whether it makes sense to refinance and whether they can recoup the costs before selling.
- Mortgage Insurance: If a homeowner has private mortgage insurance (PMI) and has built up more equity in their home, they may consider refinancing remove the PMI, but must understand how this decision could impact their monthly payments going forward.
At the Bernard Law Group we represent homeowners who decide to refinance their home and provide legal guidance throughout the process. Our clients tell us that having us involved in the refinancing process helped to provide them with peace of mind as they navigated the decisions involved in refinancing their mortgage. The attorneys at the Bernard Law Group are compliance attorneys that provide legal guidance to mortgage companies in ensuring that the loans they provide you are consistent with the laws designed to protect consumers from financial harm associated with a mortgage. Mortgage refinancing is subject to various federal, state, and local regulations, including consumer protection laws such as the Truth in Lending Act and The Real Estate Settlement Procedures Act, among other relevant statutes. We take our responsibility to protect you seriously and work with your mortgage lender to help to ensure a smooth and legally-sound refinancing experience. Our counsel and guidance include:
- Reviewing Legal Documents:
- We review and clarify all the legal documents associated with the refinancing process, including the promissory note and your right of rescission connected with the transaction. Federal law requires lenders to provide you with a three day “cooling off period” after closing, to ensure that you truly wish to move forward with the refinance of your existing mortgage.
- Explaining Legal Jargon:
- Mortgage documents often contain complex legal language and terms that may be challenging for homeowners to understand fully. We can explain these terms in plain language, ensuring that you understand your obligations and rights.
- Protecting Legal Interests:
- Protecting your legal interests by identifying any potential issues, such as hidden fees, unfavorable terms, or clauses that may have adverse consequences. This can help the homeowner to negotiate better terms or eliminate problematic clauses.
- Title Search and Title Insurance:
- We conduct a title search to ensure that there are no outstanding liens or claims connected with your property
- We assist you with title insurance to protect against unforeseen title defects
- Resolving Legal Issues:
- Address any legal issues that may arise during the refinancing process, such as issues with the title, or the clearance of pre-closing conditions set forth by the mortgage lender
- Document Preparation and Closing Representation:
- Preparing and notarizing legal documents, ensuring that correct execution, delivery of disclosures, including the right of rescission, and legal execution of all closing documents
- Ensuring that all funds are disbursed to payoff the homeowner’s existing mortgage after the transaction is out of the rescission period, and complete any other legal requirements connected with the transaction
- Post-Closing Matters:
- Confirming that the old mortgage is properly discharged and handling any legal issues that may arise
Need Help With Your Real Estate Transaction?
We love helping families, individuals, and agents navigate the real estate closing process. Call the Connecticut real estate attorneys at The Bernard Law Group today to see how we can help you achieve your real estate goals.