Refinance is a term that implies the acquisition of new mortgage financing and paying off the existing mortgage. There are many reasons one would need to refinance. Some choose refinancing as a way to consolidate their debt. Others refinance because they have found lower interest rates and would like to save money in the long run. Sometimes, a homeowner would like to rehabilitate the home and they need the extra money. There is a major difference between refinancing and mortgage modification. Knowing the difference and having an attorney to guide you through the process is important and can save you time and grief. If you need quality legal support through the process of refinancing your home, contact Marc Scollar, Attorney at Law.
Many people believe that refinancing and mortgage modification are the same process. This is not the case. Mortgage modification allows you to keep your existing loan but change the terms to reflect lower payments. Refinancing is when you get a completely new loan with a new interest rate, monthly payment, and terms. If you are looking for a lower interest rate, your lender may consider a mortgage modification in order to keep the mortgage. Mortgage modification is a good choice for some because the lender does not require title insurance for a lender policy, the most expensive part of New York closings. If you want more money, a lender will require you to refinance.
In order to choose between refinancing and modification, you should speak to an attorney. If you want to refinance your home in New York, you will need more money, a lower interest rate, a different term, or a switch from adjustable to a fixed. If you need to lower your payments, you might want to explore the process of modification, which is usually cheaper.
It is important that whatever decision you make, you work with a bank, if possible. Mortgage companies may be able to give you a lower interest rate, but it usually comes with a wide range of additional fees. Banks come with a firm commitment, lending you a certain amount of money at a certain rate. Banks are reputable and responsible. It is important to note that banks are strict in their credit and down payment requirements. We appreciate that not everyone meets the satisfaction of the banks. When dealing with mortgage companies, always retain an attorney to ensure that your rights and needs are met.
Knowing the right choice for your financial situation is important. Marc Scollar, Esq. is here to help. If you choose to refinance, Attorney Scollar can help you order a title, communicate and schedule closings with your lender and, finally, represent your needs at the closing. If you need a lawyer’s guidance through these important decisions, contact Marc Scollar, Attorney at Law for a consultation.