Refinancing is a good option to exercise when you are facing difficulties in meeting your repayment obligations to your lender. You can hope to lower your EMI’s or reduce the term of your mortgage through refinancing.
Avoid opening a new credit account
Lenders in Florida track accounts of their borrowers routinely and they are notified whenever a borrower has opened a new credit account. Availing a new credit can adversely affect your eligibility for a refinance. It will also require you to do more paperwork when you approach your lender for refinancing.
Avoid making new credit inquiries
If you are looking for a refinance, it is in your interest to not make any new credit enquiries. This is because your lender is notified of any such activity on your part and he may decline your request. It is better if you stay away from such credit enquiries until your mortgage has been refinanced. Also, notify your lender as soon as possible if you are changing your insurance agent.
Save money on closing costs
Lenders charge many different fees when issuing a new mortgage to their borrowers. You can save your hard-earned money during refinancing in many ways. Get owner’s policy of title insurance from your title insurance agent if you are eligible for reissue credit discount. You can also avoid paying the cost of survey if your earlier survey is still valid and accurate. You can save nearly $300 by producing your survey report to your lender. Finally, you can save your money on closing fees by finding a title insurance company that charges low rates for its service.
No closing cost refinance
If you are worried about all the costs involved with refinancing, you can ask for a no closing cost refinancing from your lender. Such a refinancing does not obliterate the closing costs, but it gives you different options of paying these costs. You can opt for a slightly higher interest rate and your lender agrees to absorb the cost of closing. Another way to avoid paying closing costs is to allow the lender to add them to your loan balance. This will increase your EMI slightly but make your refinancing free of cost for you.
The best way to make your refinancing easy and smooth in Florida is to hire the services of an experienced attorney. He will handle all the paperwork and make sure that you get the best possible deal form your lender.