Refinancing Your Home
When you refinance your home, you get a new loan to replace the one you already have. You might do that to:
Things to consider before you refinance
Refinancing to get a lower interest rate will probably save you money if:
If you refinance to consolidate bills and pay off debts, your total monthly payments may be less than what you pay now. However, your monthly mortgage payment will be higher. Be aware that if you get behind on your monthly mortgage payment, you can lose your home. (See Foreclosure.)
If you just need money for home repairs, you may qualify for a low-interest government loan. Call the Community Development Commission at (323) 890- 7001 for more information.
How do I find a lender?
Banks, mortgage companies and credit unions are the most common lenders. Here are some tips for finding a lender:
How much will it cost to refinance?
Loan charges will vary from lender to lender. Loan charges include points and fees. Each point is equal to 1% of the loan and is paid to the lender or your loan broker. Be sure to shop around and negotiate for the lowest interest rate, points and fees.
What do loan fees include?
Loan costs may include the following fees:
Do I have a right to cancel?
Yes. From the time you sign the loan papers, you have three business days to cancel. If you cancel, your credit report and appraisal fees are non-refundable. If you are refinancing a rental property, there is no right to cancel.
Before you sign
Request free loan counseling
We are available to review your loan documents before signing. Call as at the number below.
Contact us for more information or speak with one of our counselors at (800) 973-3370. If you live outside of Southern California, call us at (213) 974-1450.
Updated March 16, 2011
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