CONSIDERING REFINANCING YOUR HOME MORTGAGE?
Know What Fees You Will be Charged!!
(and how to save money)
Many people are considering refinancing their Connecticut mortgage, especially with the availability of some of the newer options provided such as the HARP (Home Affordable Refinance Program) which allow you to refinance some mortgages without requiring the typical 20% equity. Attorney Begemann can assist you with closing on HARP loans. The main reasons to refinance your mortgage are for a lower rate, switching from a variable to a fixed rate loan or simply to lower your monthly payment. It is important to be able to accurately estimate your mortgage loan closing costs, since these will have a direct impact on your mortgage loan amount, if you do not want to go 'out of pocket' as part of the mortgage refinance closing. You should ask for and receive an estimate of the bank charges from your lender or mortgage broker. These will be shown on what is called a Good Faith Estimate, or GFE for short. The GFE is required by state and federal lending laws. I am a licensed, experienced Connecticut real estate attorney happy to provide a quote for your real estate mortgage refinance closing costs, just click this link for a rapid, free quote!
However, some important mortgage loan closing costs that you will have to pay as part of the loan closing, the fees to actually close the loan and issue the loan title insurance policy, are determined by the closing agent (which should be a real estate attorney in Connecticut) and not by the lender or broker. These may be included on the GFE but you can still shop around for them. So when you receive these estimates from your lender they are truly 'estimates.' These charges include the title insurance and closing attorney fees.
- Title Insurance: Title insurance is required on every new home mortgage loan. A new policy of title insurance is required when you refinance, so even if you have title insurance on your existing mortgage, a new policy will have to be issued for the new lender. The charge for the title insurance itself is based on the loan amount, and the title insurance rates are set by the title insurance company and filed with the State of Connecticut. On Connecticut closings, the title insurance should only be issued by a licensed Connecticut real estate attorney or directly from the title insurance company.
- Real Estate Attorney Closing Fees: Most refinance closings in Connecticut are performed by Connecticut licensed real estate attorneys. The attorney reviews the title search, prepares and issues the title insurance, meets with the borrower to review and explain the loan documents, and should be available to answer any question or concerns from the borrower. Perhaps most importantly, the attorney handles the mortgage loan funds from the new lender, including paying off your existing mortgage(s) on your home. The closing attorney fee for performing the mortgage closing and related functions is also called a 'closing fee' or a 'settlement fee.' You should avoid having your closing performed by a notary or a representative of the lender.
Having a trustworthy, experienced and competent local Connecticut attorney handle these matters for the borrower and lender not only makes the closing run smoothly, but also provides important protections for the parties to the closing. Attorney Begemann has been practicing in the real estate field for many years and can provide the attentive, experienced and cost effective representation required for the easiest possible closing process.
- Other Closing Fees: Other closing fees include the title search. The title search is the performed by the attorney or title searcher, which requires the title searcher to travel to the town where the property is located and review the land records to verify the ownership of the property and what mortgages or liens are filed against it. There are also the recording fees, which are the actual fees charged by the town clerk where the loan documents are recorded. These fees are based on the number of pages recorded. In addition, depending on the attorney, there may be charges for overnight mail, copies, wire fees, title review fees, title commitment fees, release tracking fees, and the like.
- What will my actual closing costs be? Who can give me an accurate estimate?: Would you like to receive an accurate estimate of your loan closing costs? Would you like to be able to select your own attorney for doing the closing rather than having to rely on the one selected by your broker or lender? Did you know that you can shop around for the closing costs just as you shop around for your rate?
- All it takes is a simple phone call or email to Attorney Begemann, or click on this link,and answer a few questions about the loan, and you will receive a specific quote for the closing services. Attorney Begemann is approved by two major title insurance companies and is on the approved attorney closing list for all major lenders, including People's United Bank, Webster Bank, First Niagara Bank, Naugatuck Savings Bank (now known as ION Bank), Newtown Savings Bank, and many others.
Plus, Attorney Begemann happily provides a free initial consultation. During the free initial consultation, Attorney Begemann will discuss the mortgage loan closing process and the role of the closing attorney.
Remember that while your lender should be able to give you an accurate estimate of your loan charges (points and fees associated with the loan) you should contact the actual provider of the closing services to get an accurate estimate of your closing costs.
Paul H. Begemann, Esq.
Gesmonde, Pietrosimone & Sgrignari, LLC
Attorney at Law
Attorney Begemann is available for convenient closing and loan settlement arrangements in most towns in Connecticut, including New Haven, Fairfield, East Haven, Branford, Guilford, Madison, Branford, North Branford, Cheshire, Wallingford, North Haven, New Haven, Prospect, Woodbridge, Hamden, Stratford, Milford, Bridgeport, Westport, Norwalk, Stamford, Greenwich, Easton, Weston, Shelton, Derby, Ansonia, Danbury, Waterbury, Oxford, Southbury, Naugatuck,