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 Karam Petorak & Valvano, 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.
Refinancing Your Mortgage: What You Should Know
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:
- Availability: Refinancing may not be an option, depending on the terms of your real estate contract and Pennsylvania laws.
- Foreclosure: If there is a foreclosure proceeding filed against your home, this can make your process more difficult.
- Negotiation Challenges: Not everyone is a born negotiator. If you are inexperienced in negotiating new contract terms, you may end up paying more than you should be.
- Debt Issues: Refinancing your mortgage may mean you’re incurring more debt. Failing to keep up with high payment amounts may mean financial debt and legal woes.
The Refinancing Process
There are several steps involved in refinancing your mortgage. Your first step should be examining what your current mortgage. Check to see if there is a prepayment penalty and know what your current interest rate is. These are important 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 pay for a mortgage.
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:
- The type of refinancing option, such as cash-out or rate-and-term
- The type of loan, either adjustable-rate or fixed-rate
- The length of your new mortgage
- The current mortgage rate
- The closing costs
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 warrants 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, any alimony or child support payments.
Our Refinancing Mortgage Lawyers are Here to Help
At Mazzoni Karam Petorak & Valvano, 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 Karam Petorak & Valvano today for a free consultation. Serving clients in Lackawanna and Luzerne counties, Wayne County, Monroe County, and Pike County.