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Mortgage Refinancing FAQs

 

Should I refinance my mortgage?
Consider your goals.  Do you want to lower your monthly payments?  Take cash out to consolidate debts?  Move out of an adjustable-rate loan to a fixed-rate loan?

Gather the information about your existing mortgage and what you think the current value of your home is.  Check whether your existing lender will charge a prepayment penalty if your loan is paid off.

Talk to an Apple Bank Mortgage Consultant to determine the benefits and costs of refinancing your mortgage. 

Compare your monthly payments with a new loan to your monthly payments with your existing loan.  Given the closing costs of the refinancing transaction and any prepayment penalty that may apply to your existing loan, does it make financial sense for you?  A common rule of thumb is to try and recover your refinancing costs within two or three years if you are trying to reduce your monthly payments.

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Do I need to get an appraisal when I refinance?
Yes, an appraisal is required in all mortgage transactions.

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Do I need to pay mortgage-recording tax on a refinancing?
Yes, if you are refinancing real property in New York State.  Under some circumstances the existing mortgage may be assigned to Apple Bank, which saves the cost of the mortgage recording tax, but involves additional legal work and fees.  Discuss you specific situation with an Apple Bank Mortgage Consultant.

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How does a refinance closing work?
The closing process for a refinance is similar to the closing for when you first purchased the property, except that there is no seller involved.  After your loan is approved, you'll receive copies of documents that will require your signature at closing. While we do not require an attorney for a refinance, using an attorney usually makes the process go more smoothly and efficiently.

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