Do I Need a Lawyer for Refinancing?

Refinancing a home requires careful consideration.

Refinancing refers to taking out a new home loan to replace an older loan. Most people do this when their home has appreciated beyond the original loan and they seek to get a larger loan, payoff the old loan and pocket the difference.

Standard Practice

As a standard practice, people do not need a lawyer when refinancing a home mortgage. The processes are straightforward and loan officers are generally qualified and trained to package the loan and answer questions.

Considerations

People who are completely uncomfortable with mortgage loan terminology and home financing should consider consulting a lawyer or a financial planner prior to signing a refinance or an original mortgage. Lawyers can review the fine print and protect the legal interest of homeowners; financial planners can help homeowners make a good financial decision.

Significance

A home is the primary financial asset for many families. For this reason, homeowners should secure whatever assistance is necessary to help them make good decisions.

References

• Business Dictionary: Refinancing
• Lending Expo: Do I Need a Lawyer to Refinance My Mortgage
• Financial Web: What is Refinancing Risk