Refinancing is taking out a new mortgage for your home. There are several reasons why borrowers choose to refinance. Generally, refinancing makes sense if interest rates have lowered significantly since you obtained your original loan. Perhaps you want to shorten your mortgage payment period or want to use the equity that has built up in your home since you bought it to use for improvements. Or maybe you want a fixed-rate mortgage rather than an adjustable rate, or vice-versa. Since refinancing means you’re starting the loan process again, you will have to go through virtually the same steps as when you applied for your current mortgage.
Escrow in loans and refinancing protects both lender and borrower minimize risks in the transaction. The principals to the escrow – the lender and the borrower – create escrow instructions and entrust documents and funds to a third party, the escrow company or escrow officer. With this arrangement, the parties are assured that no funds or property will change hands until all of the instructions have been followed.
At Southwest Escrow Corporation, our experienced escrow professionals have helped lenders and brokers facilitate refinancing transactions for their borrowers. We can help you too. Call us at 310-674-7660.