Refinance Advisor Online - What To Ask Before You Sign When Refinancing

 Before you sign your new mortgage loan, be sure that your lender or mortgage broker has disclosed their annual percentage rate (APR) and their terms. Lenders are legally required by the Truth in Lending Act to disclose the cost and terms of your financing package before you sign any final paperwork. If a lender refuses to reveal this information, you should find another lender who follows the legal process.

Asking About APR

When you begin shopping to refinance your mortgage, you should ask about the APR along with other fees and rates. The APR includes the total interest, points, and other fees. The APR allows you to make a quick comparison between lenders. However, your APR could be higher if you wish to pay points for lower interest rates.

You can call up individual lending institutions to request this information or use an online mortgage broker. With their websites you will receive offers from several different mortgage lenders. They will list out their rates and fees. You may also find better deals on closing costs or interest rates since online lenders have reduced overhead.

Requesting Terms

Federal law requires all lending institutions to disclose loan costs and terms before you sign for the loan. Most of the time, lenders will send out the paperwork with your application, but some financing companies wait until the settlement period.

Once you have your loan terms, review them carefully. The mortgage terms will include information on finance charges, payment schedule, and APR. You also have the right to cancel your loan within three business days after settlement or receiving your Truth in Lending disclosures, whichever occurs last.

Inquiring About Application Refunds

While you have the right to rescind on your home loan, you may forfeit your application fee depending on the lender. Application fees for processing your loan usually total $100 to $200, which is paid with your application. All other loans fees are required to be refunded if you cancel your loan within the three days of closing.

Some lenders do not refund application fees if you cancel or are not approved. Before you apply, it is best to ask about refunds along with rates and fees.

About the author:

See my recommended Home Mortgage Refinance Lenders for the lowest rates online. Carrie Reeder is the owner of ABC Loan Guide, which offers help finding low rate home mortgage loans.

 Carrie Reeder

More Articles 

Short on cash? Finance the Mortgage Points - Syd Johnson
Once you get a quote for a home loan don’t be tempted to take the entire amount if it looks like you overqualified. Most consumers fill out an application for a home loan and hope they can get enough money to buy their dream house. A nice chunk of...

Defrazzle Your Finances - Darlene Hull
I'm living so far beyond my income that we may almost be said to be living apart. e.e. cummings Money. You can't live with it, you can't live without it. No matter how hard you try, there's never enough. The only thing increasing in your bank...

Cash Out Refinance – Home Equity Mortgage Loan or Cash Out Refinance - Carrie Reeder
There are some definite benefits to doing a cash out refinance. Just make sure that overall you are not going to be spending more money in fees and interest doing a cash out refinance as opposed to a home equity loan. When you do a cash out...

Unique homes hard to finance - Martin Lukac
Somewhere we had gotten the idea that the perfect home for us would be a steel frame, metal building. Unique, yes. Hard to finance, definitely. Fifteen lenders turned us down when we found an existing metal home to purchase. Many considered...

Finance Your Small Business: So Much Money – So Little Time - MaryAnn Shank
$47.4 million venture capital funded projects today. $86.4 million yesterday. $51.4 million the day before. These amounts are not made up. They are actual numbers from actual reported venture capital funding. I get these notices emailed to me day...

The Shadowy World of International Finance - Sam Vaknin
Strange, penumbral, characters roam the boardrooms of banks in the countries in transition. Some of them pop apparently from nowhere, others are very well connected and equipped with the most excellent introductions. They all peddle financial...

Do You Need a Mortgage Refinance Loan? - Paul Heath
Is your home loan interest rate higher than the national average? Is your home in need of some much-needed repairs or are you in need of some extra money to pay off credit cards or other bills? A mortgage refinance loan may be exactly what you need...

Invoice Factoring: Hot to finance growth without debt or banks - Marco Terry
There are few bigger challenges for business owners and managers than waiting 30 to 60 days to get paid by their customers. Although large businesses can usually afford it, smaller businesses can't afford the wait. As a matter of fact,...

Payday Loans: Personal Finance Savior Or Disaster? - Joel Walsh
Summary: You need a small amount of financial help fast, but you heard payday loans can be expensive and dangerous. What now? Find out how to avoid the dangers and reap the benefits of payday loans. Payday loans may be right for you if you need...

Bad Credit Car Loan: Extending Finance To People With Bad Credit - Gracy Parker
If you are under the impression that bad credit may hamper your chances of getting car loan, you need to think again. There are many lenders in the UK financial market who offer bad credit car loan to the borrowers with bad...