Overview of Mortgage refinance Service
Welcome to our Mortgage Refinance section at MBLAW. As homeowners, you may have built considerable equity in your property over time. Refinancing your mortgage provides an option to tap into this equity and put it to use. Essentially, refinancing involves replacing your current mortgage with a new one, characterized by a new set of terms, including duration, interest rate, and repayment schedule.
People often opt for refinancing to consolidate consumer debt, unlock equity for a down payment on another property, or fund forthcoming expenses such as education. While refinancing can be an advantageous move, it’s crucial to navigate it with full understanding and awareness.
At MBLAW, our team of experienced lawyers stands ready to assist you throughout the refinancing process. We will meticulously review your mortgage documents and ensure all legal requirements are duly met, providing you with sound guidance and peace of mind. Trust us to make your refinancing journey seamless and beneficial.
Mortgage refinance Process: A Step-by-Step Guide
Refinancing, whether for equity take-out or to achieve more favourable mortgage terms, is a significant decision that requires careful planning and understanding. From lowering interest rates to obtaining a Home Equity Line of Credit (HELOC), there can be various reasons and benefits for choosing to refinance your property.
Reach Out to MBLAW
Begin by filling out a contact form on our website, specifying your requirements for mortgage refinancing. We’re here to understand and cater to your unique needs.
Upon receiving your form, we assess your needs against your timelines. Once we confirm our ability to meet your deadlines, we send a specially tailored checklist to help you gather all the necessary documents for the transaction.
Receipt of Mortgage Instructions
At this stage, your bank or credit union will provide us with your mortgage instructions. We will use this information to prepare the required documentation.
Document Preparation and Appointment Scheduling
We diligently prepare all the required documents for your review. We will arrange a meeting with you for going over and signing these documents.
Document Review and Signing
During the appointment, you will meet with one of our attorneys to review the documents. Once all queries are clarified, you will sign the documents.
Bank Approval and Funding
Once the signed documents are sent back and approved by your bank, the funds from the new mortgage will be disbursed as per the terms agreed upon.
Our aim is to make the refinancing process as simple and seamless as possible. Trust MBLAW for an efficient, personalized, and well-guided mortgage refinancing journey.
Mortgage refinance: Frequently Asked Questions
Refinancing a mortgage does carry certain costs. These can include appraisal fees for determining your property’s value, legal fees for preparing and registering the mortgage on title, and a discharge fee if you’re refinancing before the end of your existing mortgage term. You might also have to pay a reinvestment fee to the discharging lender if you opt to pay out your mortgage before the maturity date. Finally, there may be a prepayment penalty for a closed mortgage, which can be the greater of three months’ interest or the interest rate differential. However, if your mortgage is open, no penalty will be charged by the lender.
While some banks may offer an internal refinance option using a title company, it can potentially lead to complications. By choosing to work without a personal lawyer, you risk not fully understanding the legal implications of the documents. Additionally, a title company might not provide the same personalized service and could have longer delays due to their transaction volume.
Yes, you can refinance and consolidate your loans if your bank or an alternative lender qualifies you for a mortgage. You could pay off your current second mortgage through refinancing. If you wish to retain all or part of the second mortgage and only refinance the first, you would need your first lender’s consent to have subsequent financing registered on the title.
While there’s no set limit to how often you can refinance, be mindful of the associated costs each time you do so.
Yes, refinancing can affect your credit score. When you apply for refinancing, the lender will perform a hard inquiry on your credit report, which can lower your score slightly. Furthermore, if you’re consolidating debt through refinancing and subsequently increasing your debt load, this could negatively impact your credit score. It’s crucial to manage new credit responsibly and continue making payments on time to maintain a good credit score.