By in Business

Why is Refinancing So Hard?

I received an offer to refinance with my current mortgage company and I was skeptical at first. However, now that I see the details, I see that I will save about $100 a month because my interest rate will drop by a "huge" .45 percent. Plus I don't have to pay any fees or closing costs. Great, sign me up!

Here's what I don't get... why is the entire process so long and drawn out? I did refinance once before, but that time I was switching companies so it was understandable to have tons of paperwork to do. However, this time, I'm going through the same company, and they already have all my paperwork. Yet they still say it takes 30-45 days to refinance??

As a web developer, my coworkers and I were laughing about this. I said "can't they just open their little database and change my interest rate %?". Seriously, why can't they just do that? Nope, it has to be a whole new loan with a whole new loan number, and a whole mess of new paperwork. I'm still going to have to have someone physically meet with me to sign the papers.

I just don't get it. I'm still going through with it because I'm no dummy when it comes to money, and $1200 a year is nothing to sneeze at... but it doesn't mean I won't whine every time they ask me to sign something new!

Have you ever gone through a refinance? Did you find the whole process worth it in the end?


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Comments

BrenndaMarie wrote on February 25, 2015, 5:29 PM

I have never hard to go through it because I have never had enough money for much of anything.

UK_Writer wrote on February 25, 2015, 7:36 PM

They have to be able to demonstrate that they credit checked you and that you still continue to pass their lending criteria - and the fat paperwork file has to be moved around the office and be signed off. And, there might be a valuation (they'll drive by) to check it's still there. Although the money doesn't actually exist, they'll also need to settle the first loan and open up a new loan on the system.
So it all takes time.