Taking advantage of today's low home mortgage refinance rates may save you a lot of green. But it's up to you, the borrower, to make sure that you actually get that fabulous rate that your lender promised you.
Once you receive your loan application, your lender is required to provide you with a good faith estimate, or GFE, within three days. The GFE is a fairly accurate account of your closing costs. Later, you will receive a more-detailed HUD-1 settlement statement, which itemizes all of your closing fees. These documents were designed so you could compare your estimated fees to your actual ones.
However, it is your job as the borrower to check the first page of your GFE to ensure that all of the information is accurate and that your interest rate offer is locked in. If you fail to detect mistakes in your loan summary and/or lock, your lender won't have to adhere to the agreed upon loan terms. In short, that incredible interest rate might slip through your fingertips.
It is especially important to double-check the "adjusted origination charges" on your GFE when taking advantage of today’s low home mortgage refinance rates. This lets you know whether you are paying points or getting credit to change your interest rate. You can find your adjusted origination charges on the second page of your GFE.
After you review and accept the terms of your GFE, your lender cannot make any changes to your rates and terms at the closing table. In certain cases, a new GFE may be issued, but there is a mandatory 72-hour waiting period between the time a GFE is issued and a closing.
Be sure to bring your GFE and HUD-1 statement to closing, and don't hesitate to ask questions or voice any concerns you may have. Also, keep in mind that if you go with a new lender, you can rescind your mortgage refinance on a primary residence within three business days, by law.
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