mlg-in-officeClosing Costs?
Mortgage Refinance?
Navigating the Refinance Closing Process with
Michael Gutman, Esq.

The Refinance Closing Process: Refinancing as the term implies is to get new Mortgage financing and payoff the existing Mortgage. Refinancing a home may be utilized to borrow money and receive “cash out”, or usually to “payoff existing debt”. Your existing debt is most likely your existing mortgage, and other debt can be a home equity line of credit, credit card debt, judgments or other liens.

Closing Costs? Mortgage Refinance closings are similar to a purchase closing, but there is no seller. Closing costs are similar. You must obtain title search and title insurance, pay lender fees, and other costs such as recording costs, establish escrow, pay real estate taxes, and pay water and sewer current. Keep in mind when refinancing, your title insurance from your home purchase is still in effect, but you obtain a new title search and insurance for the new lender. Title insurance is for the benefit of your lender.

We facilitate ordering title, communicate and schedule closing with your lender and conduct the refinance closing. Most refinances are to facilitate paying off an existing mortgage and borrowing at a lower rate. A simple way to analyze your savings is simply to look at the interest rate. If you lower your rate 1% on a $200,000 loan that’s generally $2,000.00 per year you will save. But there are other considerations such as transfer costs, monthly payments and budget issues that borrowers need to review. We can help you crunch the numbers to see if a refinance is right for you and makes “cents”.

Other reasons, people refinance is to buy out a partner or spouse as part of a matrimonial matter, or to consolidate debt, or to cash out equity from your home.

Does a refinance make financial sense for you? Call or email us today. We provide a free consultation.