Frequently Asked Questions About Mortgage Refinance

What questions do homeowners need to consider before refinancing?
Homeowners should consider these questions:

What should homeowners look for when comparing refinance offers?
They need to look at the interest rate to see if it is fixed or adjustable. What are the total refinancing costs, including points, underwriting, processing fees, third-party fees (IE appraisals), title, attorney fees, etc.? They should ask for a breakdown of the fees. Ask for a loan estimate. This will have all fees broken down, including the interest rate. Ask the lender how long the lock will be (15, 30, 45 or 60 days) and when they will lock their loan.

How can homeowners protect themselves from refinance scams?
Do not pay for anything upfront except for the appraisal before closing. Do some research online. Look up reviews. Ask friends, neighbors and co-workers who they have used for a mortgage company. Tell the lender you want to lock right away if you want to and ask them to send you a lock confirmation. If you receive a lock confirmation, you know you have been locked, and your rate has been protected.

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