WHAT IS MY GOAL IN REFINANCING April 29, 2009

If you don’t know your goal you will never achieve it, is true of most things including refinancing your home.  It is advisable for a borrower to discuss his refinancing plans with his attorney or accountant early on.  Before starting the process I ask my clients to get me a copy of your current mortgage statement showing their current loan balance and payments.  We discuss their plans on how long they intend to live in the home and if any future investment plans (college or home improvement) need to be dealt with.  These factors will help determine the optimal term (years to repay) and the loan amount.  A thorough understanding of your goals will allow you shop more efficiently as you can tell your lender what type of product most suits your needs.  Once we have a handle on these items we can better determine the goals of the refinance so the borrower is ready to start shopping for a mortgage.  Remember a lender is selling a financial product and is looking to make money.  Mortgage Lenders do not have a fiduciary responsibility to their borrowers which means they do not any obligation to get the borrower the best loan for the borrower.  While it is true lenders are not looking to make bad loans that people can’t pay back, the current mortgage foreclosure crisis is a prime example that lenders were thinking more of their short term profits from making mortgages than the long term effects on borrowers faced with a falling real estate market.  By calling your attorney before you make an application he will assist you in clarifying your goals, whether you are seeking a lower rate, to take money out or just to get yourself out of an adjustable mortgage.

Steven Decker is a New York Personal Injury attorney specializing in New York real estate law , New York business law, and New York franchise law. You can visit his Law Firm Decker, Decker, Dito and Internicola website by clicking here, download his FREE New York Car Insurance book, or call him at 718-979-4300 or 1-800-310-5520 for a free case analysis.

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