Once all the paperwork has been completed, you can start taking advantage of your refinanced mortgage. So, whether you’re getting a cash out, a lower payment, or a shorter term, here is everything that you can expect after closing.
You could get your money back in any number of ways if you had an escrow account for your old loan. These include the following:
You can expect your money back into your account within 30 days if you’re receiving it through check.
This could mean two things. Firstly, it will lower the amount you need to pay off. Secondly, your old escrow funds may be transferred to the new loan if you’re getting an escrow for your new loan.
You will be asked by your lender about which option you prefer and our advice would be to use your escrow funds to pay off your old loan. That will minimize the amount of money you need for closing and will speed up the loan process.
You can reduce the length of your loan and save on interest by paying extra money on your monthly payments or making additional payments. You can save a large amount of interest over the duration of your loan by making only 1 extra payment.
You’ll be paying less interest, and your loan will be paid off faster if you pay extra mortgage payments. The amount you end up saving will depend on how many years are left on your mortgage, your mortgage rate, and your remaining mortgage balance. You can find out how much money you can save with extra payments by using an amortization calculator.
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Managing Your Mortgage Payments