Do I Need a Lawyer for Refinancing?

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.