Purchasing a home is a significant financial commitment with a small margin for errors. If you have already purchased a home but now want a different mortgage rate, a different lender or even new terms, mortgage refinancing may be right for you. However, a refinance can come with important changes and issues that you may not expect. Here’s a look at what you need to know about refinancing a home to help you prepare for the process.
What Is Home Refinancing?
Most homes are purchased with the assistance of a loan from a bank which is called a mortgage. Home refinancing is the process of replacing the current mortgage on your home for a new one for various reasons like a chance to re-select multiple elements of that loan, such as the term, interest rate and mortgage insurance.
Some homeowners may refinance to change the type of interest rate that is applied to the loan. In order to qualify for a higher amount of a mortgage, some purchasers will take a mortgage with an adjustable rate. Over time, as the rate adjusts according to the agreed upon schedule, their interest rate may continue to increase. By refinancing to a fixed rate mortgage, they know exactly what their interest rate will be going forward.
Is There a Property Title Search Required With a Refinance in Connecticut?
When refinancing another title search is completed on your property from when you purchased the property forward. The title search is completed to determine what mortgage, liens, judgements are open that need to be paid off during the refinance process. The report also reflects any changes in title since the property was last purchased.
In Connecticut as with the buying process, as the borrower, you have the choice of who completes your title search. Hiring a professional title searcher will provide you with the best quality title search that is completed in a timely manner.