Gerald R. Della Torre, Counselor at Law

Refinancing – Questions and Answers

A refinancing transaction occurs when a homeowner takes out a new mortgage, frequently to either lower the applicable mortgage interest rate, or to take equity out of a home. Similar to the loan aspect of a purchase of a home, the attorney acts as the conductor for the refinance transaction. The attorney coordinates all aspects of the refinance transaction with the lender, including, ordering the title insurance with the proper title endorsements for the borrower, ordering a new survey, if needed, preparing the closing statement, and paying of all parties necessary.

Do I need to order title insurance when I refinance?

A refinance is an entirely new transaction and does require the procurement of title insurance to cover the new lender/mortgage.

Do I have to pay off all mortgages on my property when I refinance, or can I take some equity out of my house?

There are situations where a lender will permit additional financing to occur while keeping an existing mortgage open on the property. This situation is most common when a homeowner either takes a secondary, home equity line on the property, or keeps a home equity line open and takes a new, primary mortgage out on the property. In such instance, the new primary lender will require the borrower execute a Loan Subordination, which provides that the existing secondary mortgage will be subordinated to the primary loan, although the secondary mortgage was filed first. The Firm will assist in preparing this Subordination, if necessary, and will coordinate the filing of same with the new primary loan.

Do I need to get a new survey when I refinance?

The issue of whether a new survey will be required is dependent upon the circumstances. There are instances where there has been a change regarding the structure(s) on the property being financed, and in such instance, there is a likelihood that the lender would require a new survey. It is also conceivable that a lender will require a new survey so that same is certified to the new lender, regardless of a change in the structures on the property.