December 4th, 2017 7:11 AM by Jackie A. Graves
a home loan can cut your payments, let you swap an adjustable interest rate for
a fixed one and put some cash in your hand from your equity.
With all those benefits, it’s no wondering so many homeowners refinance their
mortgages every year.
Refinancing can be time-consuming,
and you may have to pay some fees out of pocket even if you choose a
here are some numbers to help convince you it’s worth your while: Recent
declines in mortgage rates mean about 4.4 million borrowers could save an
average of $260 per month by refinancing, according to a report from Black Knight Financial
what to expect before you get started can make refinancing easier and faster.
Here are seven steps to refinancing your home loan.
banks, mortgage companies, credit unions and loan brokers can help you
refinance, so it’s a good idea to shop around and talk to a few lenders before you pick one to
work with. Choose someone who’s responsible, knowledgeable and patient about
answering your questions about different loan programs. Getting a low rate is
attractive, but it shouldn’t be the only reason you choose a lender.
Shop for the best
mortgage rates today at Bankrate.com.
next steps are to complete a loan application and review the Loan Estimate you
should have received from your lender. You may need to provide documentation of
your income. If your lender hasn’t checked your credit, you should do that now,
your lender to help you decide whether to lock your rate or float your rate. If
your rate’s locked, it shouldn’t change unless the terms of your new loan
change. If you let your rate float, it could end up being lower or higher.
ago, homeowners could refinance with very little paperwork, but today, you’ll
need to supply copies of
many documents. Examples include your driver’s license or passport,
W-2 tax forms if you’re an employee, and income tax returns or profit-and-loss
statements if you’re self-employed.
give your lender every page of every document, even if a page is blank.
you’ve submitted your documents and your appraisal has been completed, your
loan should be ready for your lender’s final approval. At this time, you’ll
receive your Closing Disclosure form, which you’ll need to review, sign and
return to your lender.
next step will be to sign your loan documents. You might do this electronically
online or at your title, escrow, settlement or closing attorney’s office.
Closing a loan involves a lot of documents, so it could take an hour or longer
for you to sign all of them.
last step is for your lender to reverify your credit and employment to make
sure nothing significant has changed during the loan process. If everything is
in order, your existing loan will be paid off and your new one will be recorded
with the public records office in the county where your home is located.
Depending on the type of loan you’ve chosen, you may need to
pay some fees or costs at closing.
you decided to cash out some of your equity, you’ll receive a check or wire
transfer of the funds. Your lender will update you about how and when to make
your new monthly mortgage payment.
By Marcie Geffner – To view
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