I recently had a horrible situation with a client who was refinancing a mortgage. This nightmare led me to post this entry in order to stress the seriousness of refinancing a mortgage. Although refinancing a mortgage is a personal choice, it should not taken lightly. It is just as complicated and arduous (sometimes more) as when obtaining  a mortgage to buy a house.    Follow a few of these pointers ahead of time:

1. make sure you are aware of the cost to close and the monthly savings to decide if the refinance is even worth it
2. weigh the benefits to the refinance over the costs and time involved
3. make sure you understand how long the process will take and how much work you need to do
4. always disclose all mortgages and liens against you and your home
5. read all documents and ask questions in advance
6. after you lock in your interest rate, know the last date you can close before it expires
7. decide if you would be more comfortable having legal counsel present at the closing
8. know there is a “3 day right of rescission” which allows you to bail out of the deal up to 3 business days after the closing date.

 Take the time to fully understand the process, savings and costs before beginning the long road to refinance. Decide if you want legal counsel and schedule your closing in plenty of time before your rate lock expires. Cooperate with those professionals involved and your closing will be a good experience for you and all involved. Refinancing a mortgage gets harder and more expensive every day. So, make sure that those professionals that help you are working for you and in your best interests!  Dale Siegel

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