When does it pay to refinance?
The simple rule of thumb is to take the dollar amount of the closing costs divided by the savings on your monthly payment to determine how many months it will take to recover your cost. If you plan on staying in your home longer than the time needed to recapture your closing costs, it may be a good time to refinance.
What is your rate lock policy?
Interest rates can change daily and sometimes without notice. Locking a rate protects you if rates were to go up.
You can lock in a rate once a property has been defined. Lock-ins are valid for 60 days. If you need a lock-in longer than 60 days, you will need to contact your lender. A lock-in agreement will be mailed to you for your signature. If rates were to rise during the lock period, we will honor the locked in rate and if rates were to fall during the lock period, you will honor the locked in rate. We do not charge a fee for locking in a rate.
What happens at the loan closing?
The closing will take place at a title company. You will sign several loan documents. With a refinance, we are required to give you three days to decide whether or not you want to continue with the loan. This is called your 3 day right to rescind. Funds will not be released until three business days have passed.
Who will be at the loan closing?
Only you and the closing agent will be present. If you would like to have your lender attend the closing, please contact them to make arrangements.
What documents will I be signing at the loan closing?
The most important documents you will be signing are:
- Closing Disclosure (CD) – this comprehensive document lays out the loan terms, estimated total closing costs, and includes any applicable disclosures.
- Note – this is the document you sign to promise to repay your mortgage loan. The note will provide you with all the details of your loan such as the rate, principal and interest payments, length of loan, etc. It also explains the penalties if you do not make your payments as agreed.
- Mortgage – this document is recorded at the courthouse and places a lien on your home. The mortgage will state your rights and the lender’s rights in case of default as well as restate the terms of the Note.
Your lender or closing agent will be able to answer any questions you have regarding these documents.
Can I get advanced copies of the documents before signing?
It is required that you be given or mailed:
- A Loan Estimate (LE) within 3 business days after you apply;
- A Closing Disclosure (CD) at least 3 business days prior to closing;
- An additional 3 business days to review a revised CD if you or your lender make certain changes; and
- At least 7 business days to review the paperwork between the time you receive an LE and the time you close.
I will not be able to attend the closing. What options are available?
If you will not be able to attend the closing, you may be able to have a Power of Attorney or appoint someone you trust to sign the closing documents for you. In some cases, we may be able to send the documents to you for your signature prior to the date of the closing. They would need to be signed, notarized, and sent back before the closing date.
When will I know the exact amount of money I will need at the closing?
Your lender will contact you 24 hours before the loan closing to go over your final numbers and give you the exact amount you will owe to close. At the loan closing, you will need to bring a cashier’s check payable to the title company for the amount owed.
Can I set up automatic payments?
At the time of the closing, you will be provided with an automatic payment authorization form. You may either complete the form at the closing or send it to your lender at a later time.