Best Mortgage Refinance Companies in Lawrence, MA

Lawrence, MA Mortgage Refinance FAQs

• When refinancing, is there a state law that protects homeowners in Lawrence from predatory lenders?

  Yes. The Predatory Home Loan Practices Act offers protection from loan flipping or the practice of repeated refinancing that is not beneficial to the borrower. Lenders usually profit from this through prepayment penalties and high fees in closing, loan origination, and points payments. This leads to borrowers losing their home's equity or paying more for the refinancing even with a modest decrease in loan rates. Borrowers in Lawrence with this kind of issue may consult the Massachusetts Commission Against Discrimination by calling it at 617-994-6000 or visiting its office at 1 Ashburton Place, Room 601, Boston, MA 02108.

• Are you going to pay closing costs when you refinance in Lawrence?

  In general, yes. On average, the closing cost ranges from 2% to 5% of the loan amount. It depends on a number of factors, including the loan term and size, credit score, the property's location, and the lender. It is comprised of several costs, such as the fees for application, home appraisal, title search and insurance, recording, and loan origination. Some of these fees can be negotiable. You can also negotiate with the lender in Lawrence not to pay the closing cost upfront by rolling it into your loan balance. This is known as no-cost closing.

• If you apply for a home equity loan, do you need to pay off the down payment assistance under Lawrence's First Time Home Buyers Program?

  Yes. This is applicable if you apply for a home equity loan, cash-out refinance, or Home Equity Line of Credit. Similarly, you have to pay off the downpayment assistance if you sell the property, transfer the title, or defaulted on the mortgage. For more information on the First Time Home Buyers Program by calling the Community Development Department at 978-620-3531 or visiting its office at 12 Methuen Street, Lawrence, MA.

• When is a good time to refinance, before or after the renovation of a home in Lawrence?

  It depends on the homeowner's goal. If the homeowner in Lawrence is looking to get more money from their home's equity, refinancing after a renovation is a better option. This is because the renovation increases the home's value and subsequently its equity. When the homeowner wants to lower their monthly payments, then it is better to refinance before renovating. The money they save from the lower payments can be used to fund the renovation.

• What are the advantages of refinancing a mortgage in Lawrence through MassHousing?

  Refinancing with MassHousing can help borrowers in Lawrence avoid the risks of future high payments and save some money. It allows borrowers to get fixed interest rates throughout the life of the mortgage. They can also apply for a MassHousing Refinance and Renovation loan to cover the costs of repairs, improvements, and upgrades.