Our Refinancing Checklist

by Kevin on April 20, 2009

We are in the midst of refinancing our first mortgage. Rates have dropped significantly from when we first bought our home one and a half years ago. We’re going to be able to drop our rate 1.625%. This will end up saving us roughly $170 per month. That savings will be going straight to our second mortgage to pay it off faster.

Naturally the bank had a long list of things they were interested in seeing before they would refinance us. I thought I would list those out in case any of you are considering a refinance.

What We Need to Refinance

In no particular order:

  • full addresses from last two years
  • pay stubs for the last 30 days for the borrower
  • most recent tax return
  • copies/print outs of financial institution accounts (how much money you have in your savings and retirement accounts, essentially)
  • list of any liabilities or debts we have
  • credit scores (bank pulls them, but something to be aware of)
  • name and phone number of homeowners insurance agent
  • copies of borrower’s driver’s license
  • copy of original title policy
  • name and phone numbers to verify employment

Of course we also need to bring a check to closing for the closing costs and pre-paid items.

We are scheduled to close at the end of the week, so here’s to hoping nothing gets messed up in the mean time. I haven’t finished running the math on how much faster this means we will pay off the second mortgage, but it will be significantly faster. From there we will roll our regular second mortgage payment (and this refinance savings) towards paying off the first mortgage as quickly as possible.

We’re dreaming of a day when we don’t have a mortgage payment. It is hard to imagine — such a significant life change. One step at a time!

{ 3 comments }

Trevor @ Financial Nut April 20, 2009 at 1:39 pm

Way to go! Every little bit counts, right? We don’t have a home yet, but will soon find ourselves with a mortgage. From what I’ve learned, even just a mere $100 extra per month can make a significant difference.

Golfing Girl April 21, 2009 at 7:03 am

Keep your eye on the prize and don’t think that being mortgage-free is impossible. It just takes patience and determination. I’m looking forward to owning my own home before I turn 40 (just like my dad). I know he’d be proud.

Kevin April 22, 2009 at 9:06 pm

@Trevor: Every little bit counts, indeed. It makes a huge difference up front because it pushes up how much equity each payment has in it versus interest.

@Golfing Girl: One foot in front of the other, off we go! 🙂

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