When you refinance your home, you get a new loan to replace the one you already have. You might do that to: 

• Get a lower interest rate
• Combine or pay off bills 
• Get money for home improvements or repairs 
• Pull Cash-out for other reasons

Things to consider before you refinance

Refinancing to get a lower interest rate will probably save you money if:

• The new interest rate is 2% or more below the rate you pay now & you’re planning to stay in your home for three or more years. 
• 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.
• If you just need money for home repairs, you may qualify for a low interest government loan.

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:

Contact three or more lenders. Look for a loan with the lowest interest rate, points and Origination fees. 

Be sure the lender is licensed and in good standing with the BBB. Also check out their rating/reviews on sites like Google Maps, Yelp & others on the internet.

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:

• Loan Origination
• Credit Report Fee
• Points “Or Buy-Downs for a rate”
• Underwriting
• Appraisal
• Title Report-“Includes Closing, Abstracting, Title Review, Title Insurance any other fee’s a particular title company charges 

Optional Charges

• Surveys- “Required on Purchase Transactions”
• Property Inspections- “Are an optional but suggest service on purchase transactions. Can Include Termite, Structural, well & septic, pluming & others
• Escrow Set-Up “If Applicable” Includes Pre Paid Taxes & Home Owners Insurance. Are not considered closing costs, but are required on most loans if you want the lender to pay your property taxes & insurance.

Do I have a right to cancel?

Yes. From the time you sign the loan papers, you have 3 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 

Review all loan documents. 

The Truth in Lending Disclosure & Good Faith Estimate has the basic terms and conditions of the loan. 
The Settlement or Closing Statement also called the HUD-1 shows the fees you are being charged and what accounts are being paid off. 

Everything you were promised should be in the loan documents. If you do not understand something, do not sign. Ask for an explanation.

If you are interested in a home refinance in Oklahoma, Contact the number #1 rated lender in the state ZFG Mortgage.

http://www.zfgmortgage.com