Should I get a lawyer to refinance?

Refinancing can replace your current home loan with one that has a lower or fixed interest rate or a longer payment period that reduces your monthly bill. Refinancing has its complexities, but most homeowners don’t need the services of an attorney to navigate the process.

How to choose a law firm for refinancing your home loan?

Choose a law firm to complete the transaction. Usually, the bank you are refinancing with will recommend one or more from their panel of law firms. Once you have chosen your law firm, they will write to your existing bank for them to appoint the same law firm to act for them in the transaction.

What should I do when I refinance my home loan?

Once you decide to accept the bank’s offer and refinance your home loan, this is what happens: Choose a law firm to complete the transaction. Usually, the bank you are refinancing with will recommend one or more from their panel of law firms.

What did we learn from the refinancing process?

The irony of it all is that two weeks after the appraisal, a home just down the street worth less than ours sold for about 15% more than the appraised value of our home. As frustrating as this process was, we did learn a few things about refinancing a home loan that I want to pass along.

What’s the rule of thumb for refinancing a first mortgage?

2. Know the 90% rule: If you have a home equity line in addition to a first mortgage, the total debt to home value should be no more than 90%. There are some exceptions and certain government refinancing programs, but this is the general rule for traditional financing (with one important exception–see #3 below).

What do you need to know about refinancing your mortgage?

In a refinancing scam, the scam company or individual sends a mailer or calls you. The scammer offers to help refinance your mortgage loan at a new, lower interest rate. Most of the homeowners targeted by this kind of scam have difficulty making their monthly loan payments.

Do you need an attorney to refinance your mortgage?

If you are considering refinancing your mortgage, you may find it helpful to consult an experienced real estate attorney. A local attorney can explain the legal issues you are facing in refinancing your mortgage and assist you with contract terms and negotiation.

What happens if I refinance with a different bank?

If you go with a different bank to refi your first mortgage, you’ll need to get your current mortgage company to subordinate the second mortgage. This just means that the holder of the second mortgage agrees that the new bank refinancing the first mortgage has first dibs on your home should you default on the loan.

Can you buy a new home while refinancing your current home?

If you decide to get a jumbo loan there is no max loan amount, but the LTV is typically limited to 75% with most lenders. Yes, it is okay if you decide to rent out the home and buy a new primary residence regardless of when you took out the new mortgage on your current home.