 Staylor
Joined: 06 Jul 2009
Posts: 1
1.00 Dollars($)
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 Posted: Mon Jul 06, 2009 12:09 pm Post subject: the difference between a refinance and a renewal |
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I have a loan on the books for $47,354 acct #12345 rate 8.00
maturity date 06/18/09 or 60 months. so on 6-18-09 we do another note same account 12345 loan amt is for 37,601.00 no cash to customer. recorded a new mortgage and the rate is 6.50 for 36 months. Would this be consider a refinance or just extending our loan and no new documents would need to be sent out???? |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 1860
Location: New Brunswick, New Jersey
353.11 Dollars($)
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| Posted: Tue Jul 07, 2009 1:34 am Post subject: |
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Hi Staylor,
Whether you go for a refinance or a second mortgage, you'll have to sign the documents as you would be getting new terms and conditions for your loan. From the details that you've mentioned here, it seems that your lender has refinanced the mortgage for you. If the lender had extended the loan, then he wouldn't have changed the interest rate to pay off the loan.
It would be best if you could speak to your lender and check out if he has refinanced or extended the loan.
Take care. |
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