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PostHeaderIcon Legal Insurance, Mortgage Closing & Refinance Interest

Legal insurance: when purchasing a home it is required to have homeowners insurance. Homeowners insurance is designed to protect an owner’s residence and personal property towards losses, paying for damages to an owner’s home and its contents. This insurance is required when refinance your mortgage, all lenders require homeowners insurance. Homeowners insurance can be beneficial because it can cover if someone gets injured while on the owner’s property. When buying a property the buyer should always have an attorney present, on a refinance it is completely up to client if they want an attorney present at the closing. The rates for the insurance are based on the location and also different companies.

Mortgage closing is when a borrower is ready to close the deal about borrowing money from a lender and signing all the documentation. At the mortgage closing the loan officer will go over any questions that the borrower may have. After this a notary republic will go over all the documents and explain everything in detail. This is a way to insure the client that everything they are going to sign they understand completely. During a closing all the documents will state everything that goes on with your loan and also all the legal descriptions. The fees that are wrapped into a mortgage closing are those of what is called closing costs. The closing costs are known as lenders fees, third party fees, and also pre-paid items. Lender fees are origination, points, application, credit report and appraisal. Third party fees are company closing costs, title, and title insurance. Pre-paid items are not typically considered to be closing costs, these are items you pay regardless of refinancing or not. These fees are broken down again by recurring fees and non recurring fees. Recurring fees are your monthly payments, your taxes and insurance. Non-recurring fees are points, lender fees, and application fees. The closing costs can also be rolled into the loan so that the borrower does not have to come to the closing with any money out of pocket.

The refinance interest is the interest rate that you obtain once you do a refinance. A refinance is when you use a new loan to pay off an existing mortgage loan. This is done with a new interest rate; these rates are given to companies by the federal government and are regulated. Once a client gets a new interest rate they are saving money on monthly payments. For instance when a client does a rate and term refi they get a new loan with a new interest rate that is typically lower than their current one. This means that they pay a lower amount very month. Rates can change daily, weekly or monthly but stay relatively close. For a borrower to obtain the lowest interest rate possible they need to have great credit and also the LTV must be low and, the loan must be for single family and a rate a term.

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