How to Refinance a Mortgage in New Hampshire
- 1). Review your current mortgage. Refinancing can be costly--both in fees and interest payments. You do not want to refinance after this refinance. Make sure to review the negative aspects of your current loan and be sure to avoid them when seeking a new loan.
- 2). Pull copies of your credit report(s) at Annual Credit Report. This is the only site that offers legitimately free credit reports (it is governed by the federal government). You should pay for a copy of your three-digit FICO score, though. This will give you an idea of where you stand on the credit spectrum. Scores above 720 are excellent; scores below 600 are poor.
- 3). Look at the deed to your home. New Hampshire is a Homestead state. This means that all those who reside in the property (who declare the property as their primary residence) have a vested interest in the liens on the property. Look at the deed to the home and review who is listed as an official vested owner.
- 4). Look for a lender who offers the Interest-Only PLUS loan with a 35-year term. This is a product unique to New Hampshire. However, you should only consider this product if you're struggling to make payments or if you plan on selling the home in five years (the interest-only period expires in five years).
- 5). Research New Hampshire lenders based on your credit score. If you have excellent credit, look only at community banks and credit unions. These institutions offer the most competitive interest rates and fees. You may need to look at finance companies, too (like CitiFinancial), if you have problem areas on your credit.
- 6). Apply to several New Hampshire lenders and compare loan offers side-by-side. Pay special attention the fees involved in the refinance. These fees can include: discount points, origination fees, closing costs and attorney fees. In New Hampshire, the legal limit for fees is six percent of the total loan amount. Do not conduct business with any lender flouting this law.
- 7). Choose a loan offer and present your loan officer with all documents needed to get the loan approved: income information, existing mortgage documents, tax bills and homeowner insurance binders. Bring all occupants to the closing of the loan--the Homestead Act requires this.
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