Refinancing your home - How and why? by:Jakob Jelling
Chances are you may need a little extra money to get some work done around the home
or perhaps your current interest rate is 7.5% and the prime interest rate is 6.0% there is a benefit to restart the clock on an existing mortgage and save thousands of dollars over the life of the loan. The first thing you must realize is that refinancing your home can also be tax deductible, meaning that you will receive an extra tax advantage for the closing costs associated with a refinancing no matter what the condition, even in bankruptcy!The first step of refinancing your home is finding a reputable lender that will get the job done right the first time. Think of refinancing similar to purchasing your home, as the same information is necessary in order to get started. You will need to produce the same documentation that verifies who you are, how much you make and what you currently owe. A reputable finance company will shop your loan around to several lenders and get you an acceptance in a matter of days and in some conditions in a matter of hours.
Once you set the ball in motion, you will have to get your current mortgage holder to provide a statement of payoff that shows how much you owe at this point in time. Your home will need to be appraised in value and an interest rate will be locked in for a period of 60 days. You will be asked to sign several pieces of paper to release this information from the mortgage company. You may also have to turn in the cover page of your homeowner's insurance policy to show the break down of your coverage.
Should all the paperwork be in order, you will be given a tentative closing date by a registered title company. It is the title company's job to make sure that all documentation and title pass from the current bank to the new one at the settlement table. At the close, you will resign your paperwork and title documentation over to a new lender. In some cases, it may be the same lender as the mortgage company that you currently have. Should you have asked for some cash back a check will be presented at this time.
By Jakob Jelling
http://www.cashbazar.com
About the author
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate. Financial Services Marketing Insights: A Marketing Compass by:Jay Nagdeman Student Home Purchase Plan by:John Carle & Sharon Gregresh Nine Questions To Ask Yourself Before You Head To The Office Party by:Lydia Ramsey FOCUS on Your Business Program. Power of FOCUS. by:Raymond Johnsen Slash Your Phone Bill in Half Now! by:Reginal Smith A Great Way to Do PR by:Robert A. Kelly What to do When You receive a Bad Check by:Stephen Bucaro How Long Should You Hang Onto Your Home-Based Business Dream? by:Vishal P. Rao Ten Ways to Manage a Rapidly Growing Business by:Alvah Parker Celebrating Successes: The Power Of Compliments by:Bill Lampton Ph.D. Why Radio Advertising Could Be The Best Thing You Ever Did For Your Business by:Michele Pariza Wacek The Real Estate Bubble Fallacy by:Michael Setz Three Simple Ideas That Increase ProfitÂ… FAST! by:Neil Millar