Step 4: Closing your refinance mortgage loan

Completing a refinance is much simpler than closing on a home purchase. Without another party involved there are fewer hurdles.

Your lender will likely require that your home be appraised again before closing on your loan. Lenders use your appraisal to determine your loan amount, to ensure that the home isn’t worth less than what they are lending. You may also want to review your private mortgage insurance policy at this point; if your loan-to-value ratio is less than 80 percent, your lender most likely won’t require this.

Once the appraisal is complete, closing should be simple, though it will still require a fair amount of paperwork. It’s still critical to ask your lender for all the loan paperwork a few days in advance so you have time to review it.

Back: Step 3: Compare refinance loan offers.

Return to Guide to Refinancing.

 

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