Refinance Advisor Online - What To Ask Before You Sign When Refinancing
Below is a MRR and PLR article in category Finance -> subcategory Loans.
Refinancing Your Mortgage: Key Questions to Ask Before Signing
Before you finalize your new mortgage loan, ensure your lender or mortgage broker has fully disclosed the annual percentage rate (APR) and all terms. Under the Truth in Lending Act, lenders must legally provide detailed costs and terms of your financing package before any paperwork is signed. If a lender withholds this information, it’s wise to seek another who complies with these legal standards.
Understanding the APR
When starting your search to refinance your mortgage, ask about the APR, along with any additional fees and rates. The APR includes total interest, points, and other fees, allowing you to easily compare offers from different lenders. Keep in mind, choosing to pay points might lower your interest rate but could increase your APR.
You can gather this information by directly contacting lending institutions or through an online mortgage broker. Online platforms often present offers from multiple lenders, showcasing their rates and fees. Because online lenders typically have lower overhead costs, you might find more competitive deals on closing costs or interest rates.
Reviewing Loan Terms
Federal law mandates all lending institutions disclose loan costs and terms before you sign the agreement. Usually, lenders send this paperwork with your application, though some might wait until the settlement period.
Once you receive your loan terms, scrutinize them carefully. They should cover finance charges, the payment schedule, and the APR. Remember, you have the right to cancel your loan within three business days after settlement or upon receiving your Truth in Lending disclosures, whichever comes last.
Clarifying Application Refunds
While you can cancel your home loan within three days, you might forfeit your application fee, which typically ranges from $100 to $200 and is paid upfront. All other loan fees should be refunded if you cancel within the designated time frame.
Some lenders don’t refund application fees if you cancel or aren’t approved. Therefore, it’s important to inquire about refunds along with rates and fees before you apply.
By asking these key questions and understanding your rights, you’ll be better prepared to navigate the refinancing process confidently.
You can find the original non-AI version of this article here: Refinance Advisor Online - What To Ask Before You Sign When Refinancing.
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