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If you want to reduce monthly mortgage payments, lower your interest rates, or secure funds for big purchases, you might consider refinancing your home. The process involves getting a new mortgage to replace the existing agreement, which allows the homeowner to get a more desirable interest term. Knowing more about the advantages and risks attached to refinancing will make it easier to determine whether you’re a good candidate and what kind of attorney to hire to help navigate options. 

Good Credit History Makes It Easier to Secure Fixed Loan Rates

People often earn more money as they advance in their careers, which means they can pay bills on time and improve their credit scores. With a strong credit history, the borrower can change from a variable to a fixed loan rate. Doing so will help reduce interest costs, which means you could pay a lot less in monthly mortgage payments. Refinancing could also allow you to take equity out of the property, using the funds to pay off credit cards, complete home renovations, purchase a car, or protect current investments. 

Fees & Penalties Incurred Could Outweigh the Benefits

In many cases, mortgage companies have stipulations in place when it comes to reducing the current mortgage terms with a line of home equity credit. The agreement might include steep charges and penalties for refinancing. If you have too much debt, you might not be able to cover the cost of penalties, which could damage your credit score. Bank and legal fees will also add to the expenses. 

An Attorney Will Ensure You Get the Best Deal Possible

Jefferson-Georgia-attorneyRegardless of credit history and home equity, you should reach out to an attorney before beginning the home refinancing process. A real estate attorney is well-versed in mortgage law and will ensure you are lowering instead of increasing interest rates. An invaluable resource, the lawyer will also help steer negotiations, explain your rights as outlined in the contract, and take care of filing the paperwork with your mortgage company and bank.

 

If you have decided to refinance your house, the attorneys at Davidson Hopkins & Alexander in Jefferson, GA, will be by your side for every step of the process. For over 90 years, the team has been the go-to source in Jackson and Banks counties for residents who need help adjusting their mortgages, planning estates, and settling personal and professional disputes. To schedule a consultation, call (706) 367-5264. Visit the attorneys online to learn why you can trust them with your legal matters. Check out their Facebook page to read client reviews. 

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