How to Refinance Your Texas Home
By Allison E. BeattyLocal Lender Columnist
Jan 8, 2007
Like many Texas homeowners, you might be sitting on a nice nest egg of equity in your home. One way to tap into that is through mortgage refinancing. Here's how!
How Refinancing Works
When you refinance your Texas home, you're essentially closing one mortgage and opening another. Why? Because:- You can lower your mortgage rate.
- You can refinance to take cash out for home improvement or other expenses.
- You may get rid of private mortgage insurance (if your equity exceeds 20 percent).
Where to Find a Mortgage Refinancing Company
There are many companies in Texas that can refinance your home. Meet with local banks or mortgage brokers, or shop online for refinancing companies. You’ll want a refinancing company that has experience in your local Texas market, and that has a good reputation for customer service. Also look for:- Competitive interest rates.
- A wide range of refinancing programs.
- No documentation loans, if desired.
- Flexible closing schedules.
Applying to Refinance
Once you've found a mortgage lender, you'll be asked to fill out an application and bring in important documents, such as:- Recent mortgage and tax statements.
- A W-2 from work or proof of other investment income.
- Information on assets, such as savings accounts or stocks.
Refinancing Approval and Closing
Once your refinancing paperwork is approved, your lender will discuss a closing date. That’s when you meet to sign paperwork and your lender funds the new mortgage.The refinancing process is pretty straightforward, once you understand how everything works. Mortgage refinancing can be quick, with some lenders closing within a few weeks.
Source
www.lendingtree.com
About the Author
Allison E. Beatty is a syndicated real estate writer who has been writing columns for 15 years.