A refinance involves paying off an existing mortgage or loan with proceeds from a new loan. A refinance can be used to lower a loan term – such as reducing a mortgage from a 30-year term to a 15-year term – or to lower the monthly loan payment with a better interest rate.
During the refinancing escrow process, funds will be placed in a third-party escrow account until all parties meet their obligations. This type of escrow works like a home purchase, aside from home inspection instructions. Escrow is important because it ensures the lender provides the funds to pay off the first loan, while the homeowner is responsible for paying closing costs to ensure escrow closes. During the process, Market Street Escrow will conduct a title search to make sure the home is free of unpaid loans, back taxes and liens.
Refinancing escrow requires an in-depth understanding of escrow. If you are planning to refinance your loan, contact Market Street Escrow to ensure a smooth and easy escrow experience. While refinancing can be a bit overwhelming, you can count on our experienced escrow agents to help you resolve any problems that may delay your loan closing.