Even a minor reduction in your interest rate can produce significant savings. Borrowers can work directly with lenders in refinance situations, but as with any transaction involving real estate, it is important to have legal representation. An attorney will review and explain all of the documents you execute at the closing. Connecticut law provides a three day right of rescission period after the paperwork is signed to give borrowers the opportunity to back out of a refinance transaction if they learn of any undesirable terms at the closing.
At the closing you will be signing a contract that will obligate you to reimburse the lender a substantial amount of money, usually hundreds of thousands of dollars. The loan will be secured by a mortgage on what may be your most valuable asset, your home. Mortgages may have pre-payment penalties, variable rates, interest only payment terms, or other complex or undesirable provisions. It is important that you fully comprehend all the of the documents the lender requires you to sign.
An attorney will also secure the title research likely to be required by your lender, make sure that your old mortgage and any other encumbrances being satisfied by the new loan are properly paid, and clear evidence of any satisfied loans from your property’s title. Your attorney will also handle the proper recording of the new mortgage.
If you are thinking of refinancing and have any questions please call Cacace, Tusch & Santagata at (203) 327-2000. We can help.