do you need a lawyer when refinancing your home

Refinancing can replace your current home loan with one that has a lower or fixed interest rate or a longer payment period that reduces your monthly bill. Refinancing has its complexities, but most homeowners don't need the services of an attorney to navigate the process.

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Do I need a real estate attorney to refinance my mortgage?

Jan 10, 2020 · Generally speaking, you will need a lawyer to assist you in refinancing your mortgage, but you will not need a lawyer if you renew your mortgage. Let’s breakdown three of the most common scenarios: you refinance with a new mortgage lender, you refinance with the same mortgage lender, and; you renew your existing mortgage with the same bank.

Do I need an attorney to get a mortgage?

Jan 18, 2013 · When refinancing your home you do not need a lawyer to represnt you although you may want to hire one to help explain the documents you will be signing. Typically at a refinance closing an attorney representing the lender and a title closer representing the title company to notarize the documents will be present. The lawyer is there to represent the lender …

Should I hire a lawyer to refinance my Mississauga home?

Refinancing Alone. When you refinance on your own, without the assistance of a real estate attorney, you save the money a lawyer would charge for what might amount to nothing more than some advice and administrative tasks. The refinancing process still isn't free; lenders charge fees when you sign up for a new loan, and your old mortgage may have a prepayment penalty …

Can a real estate attorney represent the lender at a closing?

Aug 16, 2019 · “A vast majority of borrowers do not hire an attorney to oversee or assist in the refinance process because the mortgage lender will prepare all closing documents and ship them to the settlement ...

What should you not do when refinancing?

10 Mistakes to Avoid When Refinancing a Mortgage1 - Not shopping around. ... 2- Fixating on the mortgage rate. ... 3 - Not saving enough. ... 4 - Trying to time mortgage rates. ... 5- Refinancing too often. ... 6 - Not reviewing the Good Faith Estimate and other documentats. ... 7- Cashing out too much home equity. ... 8 – Stretching out your loan.More items...

What are the rules for refinancing?

A general rule of thumb is that you should have at least 20% equity in your home if you want to refinance. If you want to get rid of private mortgage insurance, you'll likely need 20% equity in your home. This number is often the amount of equity you'll need if you want to do a cash-out refinance, too.

What should I watch out when refinancing?

There are nine key considerations to review before applying for a home refinance.Know Your Home's Equity. ... Know Your Credit Score. ... Know Your Debt-to-Income Ratio. ... The Costs of Refinancing. ... Rates vs. ... Refinancing Points. ... Know Your Breakeven Point. ... Private Mortgage Insurance.More items...

Does refinancing hurt your credit score?

Refinancing will hurt your credit score a bit initially, but might actually help in the long run. Refinancing can significantly lower your debt amount and/or your monthly payment, and lenders like to see both of those. Your score will typically dip a few points, but it can bounce back within a few months.

What should you not tell a mortgage lender?

10 things NOT to say to your mortgage lender1) Anything Untruthful. ... 2) What's the most I can borrow? ... 3) I forgot to pay that bill again. ... 4) Check out my new credit cards! ... 5) Which credit card ISN'T maxed out? ... 6) Changing jobs annually is my specialty. ... 7) This salary job isn't for me, I'm going to commission-based.More items...•Oct 19, 2017

Do you have to make a down payment when refinancing?

More often than not, you don't need to put down money to refinance your mortgage. In the typical rate-and-term refinance, which lowers your interest rate and payments and/or shortens your loan term, lenders generally look for an 80 percent loan-to-value ratio (LTV) or lower and solid credit, not money down.Jul 16, 2021

Can you add closing costs to a refinance?

If you're refinancing an existing home loan, it's often possible to include closing costs in the loan amount. As long as rolling the costs into your mortgage doesn't impact your debt-to-income (DTI) or loan-to-value (LTV) ratios too much, you should be able to do it.Feb 25, 2022

How long should you stay in your house after refinancing?

How long after refinancing can you sell your house? You can sell your house right after refinancing — unless you have an owner-occupancy clause in your new mortgage contract. An owner-occupancy clause can require you to live in your house for 6-12 months before you sell it or rent it out.Oct 21, 2021

Do you lose your equity when you refinance?

Do you lose equity when you refinance? Yes, you can lose equity when you refinance if you use part of your loan amount to pay closing costs. But you'll regain the equity as you repay the loan amount and as the value of your home increases.

Does refinancing mean starting over?

Because refinancing involves taking out a new loan with new terms, you're essentially starting over from the beginning. However, you don't have to choose a term based on your original loan's term or the remaining repayment period.Aug 21, 2020

How many times is your credit pulled when refinancing?

Many borrowers wonder how many times their credit will be pulled when applying for a home loan. While the number of credit checks for a mortgage can vary depending on the situation, most lenders will check your credit up to three times during the application process.Nov 11, 2021

Does refinancing affect property taxes?

Refinancing won't impact your property taxes, and it offers many other benefits that can help you reach your financial goals.Dec 29, 2020

How to refinance a mortgage without an attorney?

When you refinance without an attorney, the first step is to examine your current mortgage. Determine whether it includes a prepayment penalty and figure out what your interest rate is . If you have an adjustable-rate mortgage, determine how close you are to the maximum interest rate and how soon your lender could raise your rates. The next step is comparing new mortgages, which is very much like the process of shopping for your original mortgage. Because refinancing is so similar to getting a mortgage, you're even more likely to be able to move through the steps without an attorney's assistance.

How can I save money on my mortgage?

By Dennis Hartman. Refinancing your mortgage can be one of the best ways to save money. Refinancing can replace your current home loan with one that has a lower or fixed interest rate or a longer payment period that reduces your monthly bill. Refinancing has its complexities, but most homeowners don't need the services of an attorney ...

Is there a scam with refinancing?

They generally come in the form of unsolicited phone calls or mailers that offer a reduced interest rate. Refinancing scams usually require an upfront fee or don't explain the costs and fees associated with refinancing.

Is refinancing a mortgage free?

The refinancing process still isn't free; lenders charge fees when you sign up for a new loan, and your old mortgage may have a prepayment penalty that you'll need to pay when you transition from your old mortgage to the new loan. If you choose to employ a mortgage broker, you'll need to pay a commission fee as well.

Can I refinance my home on my own?

When you refinance on your own, without the assistance of a real estate attorney, you save the money a lawyer would charge for what might amount to nothing more than some advice and administrative tasks. The refinancing process still isn't free; lenders charge fees when you sign up for a new loan, and your old mortgage may have a prepayment penalty ...

Why do Canadians refinance their mortgages?

Many Canadians choose to refinance their mortgage to help lower their current interest rate or even to receive access to equity they have in their home. By refinancing, homeowners can access as much as 80 percent of their home’s value, less the balance of the mortgage. Although this is an exciting prospect, it can also leave some homeowners ...

What do real estate lawyers do?

When you meet with your own real estate lawyer, there are several tasks they will perform. First, they will review your mortgage loan and its terms and conditions. They will make sure that you understand its terms and conditions, that they are legal, and are fair to you. Your real estate lawyer will also conduct a title search to see ...

Do I need a lawyer to refinance my home?

While you do not have to hire a lawyer to complete the refinance of your home, it is always a good idea. There are many benefits to doing so. Using the lender’s legal services might be tempting as it can sometimes be cheaper, but doing so can cause the refinancing process to take longer than it needs to. Your own real estate lawyer in Brampton has the time to give you and your financial situation the attention you deserve. You are not just another number or loan when you hire your own lawyer.

Why do you need an attorney for a mortgage refinance?

Homeowners may consider refinancing a mortgage loan for a variety of reasons – from obtaining lower interest rates to adjusting the duration of the loan. As with many legal and financial transactions, refinancing a mortgage can be a daunting task. While not required, it’s important ...

What is predatory lending?

Predatory lending refers to lenders who target people with dishonest tactics like charging hidden fees and providing misleading information about loan terms. These schemes may appear to be favorable and affordable, but they are deceptive and can trap the borrower in a cycle of debt.

What can an attorney do for a refinance?

An attorney can help you examine lender offers to determine whether or not the costs, fees, and terms are legitimate. 2. Protect Your Interests. When refinancing your mortgage, it’s imperative to have someone looking out for you and your best interests.

Is refinancing a mortgage a legal process?

Refinancing your mortgage involves many different parts and it can be a complicated legal transaction . An attorney can help you simplify the process and ensure it runs smoothly. In addition, they can provide peace of mind by reviewing your documents and guiding you on what steps to take next.

Why do you need an attorney for a home purchase?

Here are a few reasons you might need or want an attorney to be part of your home buying team: State or lender requirement: Every state has slightly different laws regarding real estate transactions, and some states consider certain actions that are part of the process to be “practicing law.”. These regulations are often meant to prevent real ...

What is a real estate attorney?

A real estate attorney is someone who is licensed to practice real estate law, meaning they have the knowledge and experience to advise parties involved in a real estate transaction, such as a home sale.

Do you have to have an attorney at closing?

If your mortgage lender requires an attorney to be present at closing, whether the buyer or seller covers the cost of the closing attorney will depend on how your contract was negotiated. If you want your own attorney in addition to the one required by your lender, you’ll also pay for any services they provide you.

Who is in charge of closing a home?

In some cases, a real estate attorney is also the person who’ll be in charge of your closing. In a home purchase transaction, both the buyer and seller can hire an attorney to represent their interests during the process. Or, in the case where an attorney is overseeing a closing where the home is being purchased with a mortgage loan, ...

Is it legal to buy a home?

Buying a home isn’t just a simple purchase; it’s also a legal transfer of a property from one entity to another. Because the legal side of this transaction can be so complex, sometimes it makes sense (or is even required) for home buyers or sellers to enlist an attorney who can look out for their best interests.

David R. Lucas

The short answer is no, however don't think that a simple rate change means simple documentation by the bank. You'll still sign away your "first-born"! A good lender will let you choose your own attorney to handle the refinance closing. I would ask the lender about that option...

George M. Megaloudis

Non attorney closings are illegal in Massachusetts. If the lender isn't using a lawyer and just a notary, the transaction doesn't smell right. Typically, most people don't use an attorney on a refinance, but there seems to be something about this deal that isn't sitting well with you.

Kati M. Amarantes

It is always a good idea to have an attorney review your mortgage documents. Do you have to have one, no, but again I would strongly recommend you do. For a simple refinance, it should not cost a lot to just have the peace of mind of the review of the documents. However, it is solely your choice...