Those of us who have mortgages would love to use the option of refinance when possible, due to its obvious advantages. In the present, a refinance application would take probably a few days to complete. A few years ago it would have taken weeks or months to complete the refinancing process. It would be interesting to find out what has contributed to this change.
One factor is the streamlining of the refinancing process. Instead of a new set of paperwork, the original loan’s paperwork is used to refinance. This step itself reduced the process time from months to weeks. This means limited paperwork. Add this to easier income and asset verification and sometimes no appraisal and we get significantly less effort and time in the refinancing process.
Today we have a variety of lenders to choose from. With the increase in the number of lenders, the competitiveness has also increased. As a result, the rates and lending processes have changed in order to attract us – the customers. The lenders are more focused on our needs and convenience.
De-regulations by the government in the late 1980s also fuelled this competitiveness by simplifying the process and thereby increasing its efficiency.
Refinancing has finally changed from a complicated, long-drawn process to a simplified process, which may be completed in a few days. This has helped us customers and has proved that the focus should be on the consumer and not always on the profit margin.
This blog post has not taken into account your objectives, financial situation or needs. Due to this, before acting on any general advice/information in this communication, you should consider whether it is appropriate to your objectives, financial situation or needs.