Refinancing a home means paying off the existing mortgage with proceeds from a newer loan. Refinancing allows borrowers to reduce monthly loan payments with a better interest rate or even reducing the loan term limit. For example, refinancing your current home loan could potentially reduce the term limit from a 30-year home loan to a 15-year home loan.
During this process, the funds from the loan will be held in a 3rd party escrow account until all requirements are met from the obligated parties. This type of escrow is similar to a standard property purchase, without any regulations or inspections required in a new home purchase. Having an escrow company involved is important because it requires that the mortgage company lends the full refinanced loan, while the borrower pays the required closing costs and all parties are responsible until escrow closes. To make this process 100% complete, First Priority Escrow conducts a title search to ensure property does not have any existing unpaid back taxes, liens or additional loans.
Even though Refinancing can be tricky, our team of Escrow officers have in-depth knowledge of how your refinance should operate. If you are planning on refinancing your existing mortgage, let First Priority Escrow ensure that you have a smooth and safe refinance experience. We will gladly answer any questions or concerns you may have to prevent you from delaying your loan process.
First Priority Escrow manages all details of the refinancing escrow process:
- Management of the escrow account as a neutral third party
- Request title reports
- Depository for funds that will change hands
- Process and coordinate exchange of documents and funds
- Security and accountability of funds
- Keep all involved parties informed of progress
- Quick response to lender requirements
- Secure release of conditions
- Secure approvals for all documents and reports
- Prorate taxes, HOA dues, utilities and more
- Management funds disbursement to all parties
- Prepare and deliver the final settlement statement
- Ensure all funds, documents and reports are closed