How to Refinance

Video Transcript

"This is Patrick Munro, financial adviser, asking, "What is the refinancing process?" Refinancing a mortgage is a process that occurs when an individual decides to take advantage of a lower prevailing interest rate. In order to do that, there has to be an appraisal done on the property. An individual has to put forward their financial statements so that they can be redeemed as credit-worthy. And, of course, the bank decides that the house is still a good risk and so is the borrower. And then a closing date is set to advance the funds to the borrower, if they're going to have cash close. And that closing date is set, and the lawyer is retained to do all the title work. And a lot of papers are signed. And at the end, you walk out with a new agreement with the bank and a mortgage payment to match for a definable time, going forward. Those are the steps involved in refinancing a mortgage. This is financial adviser Patrick Munro."