Basics of Home Refinancing
If you have never undertaken a refinance before you may have questions. The term basics of refinancing is a bit of an oxymoron as there isn’t really all that much that’s basic about a refinance. Still, if you are thinking of undertaking the task, here is some of what you need to know.
Four Steps to the Basics of Refinancing
- Pros/Cons: This may seem like something of an obvious statement but the truth of the matter is that a refinance is a big deal. It’s not simply about getting a lower rate on your loan. If you are 15 years into your loan, even if you can get a lower rate by refinancing now, it may not be in your best interest; Because of interest. You have already paid the lion’s share of your interest when your loan is half way paid off. If you refinance you are taking out a new loan with new interest. You need to be apprised of the whole picture of your refinance, not just the lower rate.
- Documents: You need to have all of your documents related to home events and loan events. It would be helpful if you keep everything relevant in one place, but time and carelessness can misplace vital things.
- Lenders: Once you’ve decided to go with a refinance because you think it makes sense for you, then you need to find a lender. The tedious act of fielding offers can be time consuming.
- Costs: You need to be sure of any up-front costs which are required.
Of course, when you are mulling over the basics of refinancing you may still feel like your individual loan has stipulations that you’d like some clarity on. Even if you have all the details already you may want to find more lenders to get other opinions. As a leader in this industry, Paramount Equity can help you every step of the way.