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(originally published June 2009)
In our last article, we discussed the steps homeowners should to take in order to evaluate their budgets for refinancing. Now that you’ve prepared your budget, it’s time to review your options.
According to the U.S. Department of Housing and Urban Development (HUD), just knowing the amount of the monthly payment or interest rate on the new loan is not enough. Ask your lender or broker for information about the loan amount, loan term and type of loan so that you can compare your options. According to HUD, homeowners should to obtain the following information from each lender and broker:
Remember that you have the same rights during refinancing as you would during an initial loan application. The mortgage broker is required to give the homeowner a written “Loan Broker Services Contract.” That contract must include the dollar amount of the refinanced mortgage, the mortgage broker fee and the time period during which the homeowner must work with the mortgage broker exclusively. The mortgage broker is also required to give the borrower a written “Good Faith Estimate of Closing Costs” within three business days of taking the mortgage loan application.
Use the refinance savings calculator to help determine if refinancing is right for you. Should you decide to refinance, make sure you are working with a qualified loan broker. Call the Indiana Securities Division at 1-800-223-8791.
- Search loan broker database
- Contact the Securities Division