| |
| |
|
Mortgage & Refinancing Information |
|
|
|
Home Mortgage Refinancing - What's in Your Contract?
Are you one of the millions of Americans who will be refinancing their home mortgage loan this year? When you sign your contract and the other papers for your refinance, will you know what your signing? Your Contract: This one is simple, but I would guess very few people do it. READ THE ENTIRE CONTRACT. It seems that usually the home mortgage refinancing contract is written with the preparer pointing out the obvious terms, i.e. sales price, earnest deposit, closing date, inspections, etc., but all of the language in the contract is binding; not just the part that your read and/or understand. Read it and if you don't understand it, seek legal counsel. This is the agreement for every part of the transaction. How taxes will be prorated, who pays for what, when do you agree to close the transaction and when will you be allowed to take possession of the property are all in your home mortgage refinancing contract. If your purchase is new construction there are often many specific clauses to your sale. Remember the builder probably sells many more houses than you buy and knows what language to include in his contract to protect and benefit him. Make sure this language is something you are willing to abide by. There should be specific language in all contracts as to what amount will be used to prorate items, in particular property taxes. It is particularly important in new construction or areas that are being reappraised to understand how taxes will be prorated. If it states that the last available tax amount will be used you need to find out, before agreeing to it, that this amount was not based on a lesser value. In new construction the property was probably taxed on land value only or a partial value of the improvement. The tax bill that you will be responsible for will probably be based on a higher amount. If the Seller is giving you a credit for their part of the year that they owned the property before an actual tax amount can be ascertained, make sure that the best available information is being used to estimate the taxes. You also need to be aware that if you have an escrow account with your lender that they may set your monthly tax payment up on a lower amount than when your property is fully assessed. Be prepared to have your monthly payment increase when the higher tax bill is paid and your escrow account is analyzed. You many have a shortage that you'll want to pay all at once rather than have it included in your payment increase. If your escrow account is already short from a previous tax payment there will not only be an increase for the next year's tax bill, but an additional increase to cover the already existing shortage. Paying the shortage in one lump payment would eliminate this double increase. Your payment will still increase to the amount required to pay the next year's bill, but you won't also be making up for last year's shortage. This can be confusing so ask your home mortgage refinancing closer or loan servicing department of your lender to explain your options. If you're buying a property that was split at the time of your sale (duplex, large parcel split into smaller ones, or some types of new construction) make sure that your property is assigned it's own tax identification number before a tax bill is issued. You don't want to receive a tax bill that includes other property other than the one that you own. When you review your preliminary title commitment tax information should be included in the search. You can find out if the tax identification number included other property. This number is also what you will use if you need to contact the County for any other information regarding taxes. Before you sign, if there is something that is not clear to you or you don't understand, ask. Most mortgage refinance contracts are standard forms and your loan officer or mortgage loan closer can usually clear up any confusion you may have. Remember that the papers you sign are legal documents and you are agreeing to the terms stated in the contract. If you're not absolutely certain that you understand your contract, seek legal counsel. About the author: J. Stewart offers more timely refinance and mortgage information for those wanting to refinance at http://www.2applyforloan.com
MORE RESOURCES:
Mortgage-Refinance - Google News |
|
|
|
RELATED ARTICLES
Mortgage Free In 15 Years! Imagine paying your mortgage off in 15 years! Think of all the great things you could do with that extra money. What would you do? Retire early? Buy an R. Home Mortgages: Does It Ever Make Sense to Pay Points? Interest rates on home mortgages are often quoted with and without points. A point equals one percent of the amount you are financing. Online Home Equity Loans: A Basic Glossary Home equity loans can be a great idea for individuals looking to get out of debt or make necessary repairs on their homes. During the process, you will come across a variety of terms and acronyms. A Guide to Getting a Home Improvement Loan If you've got a few things around the house that you'd like to spruce up but don't have the money for, you might want to consider getting a home improvement loan. As the name implies, a home improvement loan is designed to pay for improvements to a house or other form of real estate. Kings Bay Saint Marys & Kingsland Georgia - Affordable Home Mortgages Buying a home is usually the largest purchase any of us will make in a life time. When choosing a home, you want to find one that suits your families needs best. Interest Only Home Loan - Is It Right For You? There are many benefits to interest-only mortgage loans. There are many situations where an interest-only mortgage loan could be best for you. Mortgage Prepayment Penalties - Just Say No One of the most common terms found in a new home loan is a prepayment penalty. This type of penalty says that if the borrower pays off the loan early, commonly during the first five years of the loan, then the borrower will be responsible for paying an additional amount of money, typically about six months interest on 80% of the mortgage balance. Need Mortgage? Alternative Finance Often Masks Predators, Who Want to Steal Your House So, your bank had just turned you down for a mortgage application. The same thing also happened, when you went to other banks in your area. Council Right to Buy Mortgage - Helping Everyone Have a Home of "We will help every Council Tenant to become Home Owners" With these historic words Margaret Thatcher initiated an equally historic concept of council right to buy scheme. However, the groundwork for this scheme had been laid much before in the 70s under the reigns of the labour government. What Is The Best Deal For A Mortgage? Few of us invest the time and effort into researching and securing the best deal for a mortgage to purchase our home.For most of us, our house is the single most important and expensive purchase we ever make!We invest a lot of time and effort into finding the perfect property in the best location and with as many of the features from our wish list as possible, yet, when it comes to finding the best deal for a mortgage, we take what is offered rather than researching and securing the best mortgage for our situation. Home Loans and Mortgages - Beware of Deed Theft Scam The average home in the United States has a value of $206,000, a record amount. Real estate prices have been rising throughout the country during the last five years, and homeowners have seen the value of their property skyrocket. Understand a Real Estate Appraisal Happy New Year. Make a difference this year. Online Mortgages in 5 Easy Steps! We're all entitled to the opportunities and benefits of home ownership. But because most of us aren't loaded with cash, we must find banks and lenders to assist us with finance. What Length Mortgage Is Right For You? You've found the home that is right for you, and now you need to do the same thing for a mortgage. There are several options for people out there, each one designed for a different type of buyer. Guide to Flexible Mortgages Outlined below is a useful guide to flexible mortgages. Flexible mortgages are also known as Australian Mortgages because they usually feature something which is common in Australia - interest recalculation on a daily basis. Zero Down Payment Mortgage - Can It Be Done? "I've been renting for years now; I've always paid my rent on time. I'll start a savings account soon, so I can buy a house": sound familiar? How much is in that savings account now? Just as I thought, not enough, you went on vacation, found a car you had to have, or WOW; look at the flat panel T. Carolina Mortgage Loans You're selling your home and are looking to relocate to the Carolinas. While researching homes in your new community you discover that you do not know of any mortgage lenders in the area. Understanding Mortgage Points When a mortgage broker asks a borrower to pay points, he or she is asking for a lending fee expressed as a percentage of the value of the loan. For example, two points on a deal worth $100,000 works out to $2,000. Mortgage Loan Information - Know The Basics When You Refinance or Purchase a Home If you are currently looking for a new home, chances are that in all the excitement you won't really give any thought to the type of home loan mortgage you take out, instead going with the first one offered to you. This could be a serious mistake - costing you thousands, if not tens of thousands. Low Income Home Loans - FHA and VA Mortgage Loans Can Help You Get Approved If you have low income and are looking to get approved for a home mortgage loan. There are many programs available to help you get approved.
|
| home | site map |
| © 2006 |
