Legal representation at refinance closing

[Ellenmw]

Do I need a lawyer for a re-finance? I have arranged to refinance a co-op loan to a shorter term, a lower rate, and a smaller loan with the same lender. The lender's attorney has suggested that I do not really need a lawyer for this -- what is your opinion?

Thank you very much.

 

[vrzirn]

In this instance I do not think you need a lawyer. I presume you understand all the terms and conditions of the new loan and there will not be any unpleasant surprises. e.g. balloon payment.

 

[vrzirn]

How is the loan getting smaller?

 

[HomeGuru]

I presume the loan is getting smaller due to the paydown in principal over the years, provided you are doing a rate and term refi.
If you do not use an attorney be sure that you check for a prepayment penalty clause, due on sale or transfer clause, if adjustable, check the max index, APR, correct impounds........

 

[Ellenmw]

reply to vrzirn re "how is loan getting smaller"

Many thanks for your reply. I am paying down a portion of the balance. Don't know if that changes anything . . .

 

[vrzirn]

Not really changing anything. It depends on your investment philosophy. That is an entirely different lesson in economics and financial strategy. You would be wise to read some good books on the subject and take some seminars. Good luck.