Homeowners and homebuyers often meet many challenges when looking to refinance.
Refinancing a mortgage means applying for a new mortgage that can better pay off your existing mortgage, while also securing a lower interest rate if possible. The most common reasons for refinancing are to get more favorable terms, including:
- Obtaining a lower interest rate
- Converting adjustable interest rate loan into a fixed-rate
- Getting cash from the accumulated equity in your home
At Mekhtiyev Law Firm, we can help you understand the intricacies of refinancing your home so that you can make an informed decision. We represent and navigate borrowers who are looking to refinance their mortgage throughout the entire process. In some instances, our attorneys have also help you to save on closing costs.
Before you apply for refinancing, it is a good idea to schedule a consultation with one of our attorneys, as it can help you understand all of the complexities that the refinancing process involves.
Refinancing Services We Offer
At Mekhtiyev Law, we offer a range of legal services for homeowners seeking to refinance. These services include, but are not limited to:
- Negotiating the terms of the loan
- Reviewing and helping the client understand the mortgage commitment
- Corresponding with the former lender, new lender, and the title company
- Requesting payoff letters from the former lender to pay off existing mortgages and other debts
- Reviewing of the title commitment documents
- Representing the homeowner at the closing
Refinancing Your Home
As a homeowner, you may want to consider refinancing in order to benefit from lower interest rates, reduced mortgage payments, or using your home equity for another purpose.
Refinancing is a technical and complex process and involves a property appraisal, a title search, a credit check, and many other requirements. Since the entire process is quite time-consuming and expensive, individuals should only consider this option if it can reduce their monthly mortgage payment significantly.
When the homeowner is refinancing, the property acts as collateral. If the homeonwer is unable to pay back the loan according to the terms of the Note and Mortgage, the lender has the right to foreclose on the property.
As such, if you are not experienced in financing or refinancing, it is important that you hire the services of a real estate attorney who can guide you through the entire process with your best interest at heart.
CEMA stands for Consolidation, Extension, and Modification Agreement. This type of loan can only be applied for in the state of New York and is used by homeowners and buyers who want to refinance.
A CEMA loan is a contract between your current lender and new lender to combine two or more loans into a single consolidated loan. If the homeowner wants to refinance their current mortgage and has paid mortgage tax to the state, CEMA will enable them to pay state mortgage tax only on the new loan or the additional amount above what was borrowed originally.
In accordance, rather than paying the local and state tax on the amount of the entire loan amount, with a CEMA, you will only be paying the difference in tax between your new loan amount and the previous loan amount.
You do not have to pay any cancelation fees on the existing mortgage, and the homeowner’s credit report will show the previous mortgage was transferred to a CEMA mortgage.
CEMA mortgages can only be applied for purchases on one to three family homes or a single residential condominium unit. Cooperative housing cannot benefit from CEMA since these properties are considered personal property, not real property.
In addition, CEMA cannot be used on home equity loans, home equity lines of credit, second mortgages, or for mortgages being discharged. This option only applies where a mortgage recording tax is applicable.
As you can see, the process is extremely complex and consists of various terms and conditions that most homeowners are not aware of. A qualified real estate lawyer in New York has in-depth knowledge about the various financing processes and can help you understand your options and assist you every step of the way.
Why You Need to Hire a New York Real Estate Attorney When Refinancing
Many lenders offer low interest rates to entice homeowners to quickly apply for refinancing. However, such advertised rates are often too good to be true — there is almost always a fine print involved in refinancing. A person who is not familiar with such tactics can fall victim to these scams.
However, a seasoned real estate lawyer can help you determine whether an offer is legit or not.
A seasoned real estate New York lawyer will make sure that the information contained in all of your legal documents related to refinancing is correct and complies with the federal, state, and local laws. It is important that you hire a qualified attorney to help you understand what the documents mean so that you can avoid unnecessary anxiety and stress during the refinancing process.
Closing a Loan
A real estate lawyer can help you correspond with the previous and new lenders, as well as the title company. This means they can order payoff letters, review the title report and commitment, prepare you for the closing process, and effectively represent you.
The closing is the last step in the loan process where you and the other party need to sign the relevant loan and legal documents. It involves understanding important legal documents, including the deed, mortgage, and promissory note.
Keep in mind that the lenders attorney who is present at the closing does not represent you. That attorney represents the lender and has a fiduciary responsibility to that lender. It is important that you understand what you are signing and the costs associated ; otherwise, it can end up with costly consequences for you.
As such, it is important that you protect your interests by having a real estate attorney present at the closing. A lawyer can help make sure that any issues with the title have been resolved. They can also handle the distribution of the mortgage proceeds, make a record of the important documents, and successfully discharge the old mortgage.
At Mekhtiyev Law, we can help you prepare the necessary documents before closing the loan as well guide you through the actual closing process.
Schedule an Appointment with Mekhtiyev Law
When refinancing, it is recommended that you hire the services of a real estate attorney. The attorney can help you understand the process and guide you through the process. They will also be there at the closing when you need to review and sign complex documents that will place a lien on your home and will require you to pay out large sums year after year.
With a highly qualified attorney, you can be sure that you are agreeing to the right thing.
At Mekhtiyev Law, we have a team of experienced real estate attorneys who advise homeowners and buyers on various different types of real estate transactions. We can help you obtain or refinance your mortgage in New York to meet your financial goals.
If you are looking to refinance your current mortgage, we can review your options and help you understand the relevant documents so that you understand their legal implications and make sound decisions.
Call our office today at (212)203-6974 to schedule an appointment.
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