Best Mortgage Refinance Companies in Naperville

Frequently Asked Questions

• Introduction

  Refinancing a mortgage can be a complicated process, and hiring a mortgage refinancing broker can make it simpler and faster. There are several things you can do to protect your interests and help your broker complete the process for you.
  

  
  

  Check a potential broker’s online reviews to find one with a good reputation. In addition to the opinions of past clients, check to see if a broker has an online portfolio, which can support the reviews you find from past clients to show a broker’s trustworthiness. This can also help you establish if a broker has handled financing for properties similar to yours.
  

  
  

  Get a written summary of a broker’s rates before committing so you know exactly what hiring your chosen mortgage refinance broker will cost. Find out which lenders work with your broker and what information they need to successfully refinance your mortgage.
  

• How can you quickly calculate the break-even point in a refinance in Naperville?

  The closing cost, which is 2% to 6% of the loan amount, can be used to calculate the break-even point, or the time it takes to recover the costs of refinancing in Naperville. Divide the total cost by the amount you will be able to save each month to get the number of months required to pay off the refinancing cost. Typically, the closing cost includes origination and application fees.

• Is it legal for an appraiser in Naperville to inflate a home's value during refinancing?

  No, the appraiser in Naperville violated the Real Estate Appraiser Licensing Act and the Uniform Standards of Professional Appraisal Practice. Some brokers make this type of arrangement with an appraiser in order to get the refinance approved when the home's value is low. In addition, the broker is in violation of the Residential Mortgage Licensing Act of 1987.

• Can getting a refinance affect your income taxes in Naperville?

  If you refinance and your monthly mortgage payments decrease, your income taxes in Naperville may rise. This is because you will have less interest to deduct from your tax returns. When you get a lower-interest mortgage, this happens. However, if you obtain a cash-out refinance, you do not need to report the money as additional income on your tax returns because the IRS considers it to be a debt.

• Do you have to notify the county appraiser if the value of your home changes after an appraisal during a refinance in Naperville?

  Yes, because this will affect your Naperville property tax bill. If you refinance and discover that your home's value has decreased during the appraisal, send the appraisal report to the township office and file a reduction request on the value's assessment. For more information, call the DuPage Township Assessor's Office at 630-759-1315. Their office is located at 241 Canterbury Ln, Bolingbrook, IL 60440.

• Will you get a check during closing when you refinance in Naperville?

  In some cases, you will not. This is because you have three business days after closing to cancel your refinance agreement. Following the expiration of this period, your closing attorney or agent in Naperville will receive the check from your new lender. Before the remaining amount can be sent to you as a check, the payout must be recorded on the mortgage and used to pay off the old mortgage.

• How do you refinance a mortgage?

  Decide why you’re refinancing, such as to get a lower interest rate, pay off your loan faster, or to get a lower monthly payment. Share your credit information with your broker along with information about the equity you have in your home. Review your mortgage refinance broker’s quotes and choose the best loan terms.