If you are looking to save a little money, refinancing your mortgage may be an option to consider. By replacing your current home loan with a more manageable mortgage means a reduction in your monthly bill, even if it means the length of your loan increases. But refinancing comes with many complex legal concerns, and it’s beneficial to have an experienced refinance mortgage attorney by your side to help you with the process.
At Mazzoni Valvano Szewczyk & Karam, our Scranton real estate attorneys have been working with clients throughout Northeastern Pennsylvania since 1962. We understand the complexities involved in these transactions and can help simplify the whole process, making sure you’re getting the best loan terms possible.
When you try to refinance your mortgage on your own, although you may be saving money, you could run into trouble down the line. You may be facing penalties, processing fees, commission fees, and lender charges. But by hiring an attorney, you can keep all these costs under control.
By hiring a refinancing mortgage attorney, it will help avoid legal problems you may run into down the road, such as:
There are also reasons you may not want to refinance your mortgage that you may otherwise not be aware of. Not only may it put you at a financial disadvantage, especially if your home has decreased in value for some reason. You may also not want to stay in the house long term, which will cost you more in the future.
There are several steps involved in refinancing your mortgage. Your first step should be examining your current mortgage. Check to see if there is a prepayment penalty and know what your current interest rate is. These are important facts to know before you begin shopping around for a new mortgage. You may also want to examine your budget and see how much you are able to feasibly pay each month.
Once you know the specifics of your current mortgage, it’s time to see what’s out there. When shopping for a new mortgage, keep these options in mind:
At this time, it’s beneficial to have an attorney helping you with the process. The attorney can advise you on what your best option may be and help you avoid any schemes and scammers out there. There are predatory lenders out there who will attempt to entice you to refinance at a reduced interest rate. However, these scams don’t explain the costs and fees involved and usually warrant a fee upfront.
Once you choose a lender, you’re going to want to lock in your rate, meaning your lender will commit to the day’s rate options, even if your rates go up in the future. Then comes the paperwork. You will need tax returns, W-2s or 1099s, bank statements, and any alimony or child support payments as proof of income.
Predatory lending occurs when a lender uses deceptive or scam tactics to entice a borrower into taking a loan, without knowing the full terms and raking up additional expenses. This practice was a particular problem in the 2008 mortgage crisis. But it still occurs today.
If you suspect you are a victim of predatory lending, here are some common warning signs you may want to be aware of.
At Mazzoni Valvano Szewczyk & Karam, we want you to get the best possible outcome for your mortgage, one that fits your needs and won’t hurt you financially. We will negotiate with lenders on your behalf to make sure your costs are minimal. We’ll walk you through the refinancing process and will advise you on what your next steps should be.
If you are considering refinancing your mortgage, don’t go through the process alone. Contact the Scranton refinancing mortgage attorneys at Mazzoni Valvano Szewczyk & Karam today for a free consultation. Serving clients in Lackawanna and Luzerne counties, Wayne County, Monroe County, and Pike County.
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