Home Seller: February 13, 2026

ALL THINGS REAL ESTATE

Realtors not always best legal advisers

Q: My mother and father passed away last year. They were living mostly on Social Security and didn’t have much except their small house, which was bought and paid for. My sister and I are their only chil dren and heirs. My sister lives in Florida, so we’ve agreed that I should take care of things here, which mostly means getting the house sold. I con tacted a Realtor this week who told me I’d have to transfer title to the property into my name in order to sell it. She put together some forms for me to sign and get notarized. Do we need an attorney?

A: Don’t be too quick to sign anything.

Regular readers know I often advise home buyers and sellers to utilize the expertise of their Realtor and, in most cases, don’t waste your money by duplicating that expertise with an attorney.

But this isn’t one of those cases.

I am a big proponent of the notion that Realtors can and should take care of most of the legal needs of their clients during routine real estate transactions. But that practice should be limited to the typical type of transaction which is well within every Realtor’s expertise.

But when the true sellers of the property, your parents, are deceased, the transaction is anything but typical.

In this case, the Realtor is stepping well beyond the bounds of a licensed real estate agent and into the realm of an attorney. Specifically, an estate and probate attorney.

First, in most cases, you can’t put the house in your name absent a court order authorizing it. That authorization comes

during the course of a probate.

action where a judge oversees assets after they’ve passed away.

reason for probates is to make sure the decedent’s creditors get paid. So if your parents died with debt, such as credit cards, you’d have to find a way to pay those

order the property sold and the your name is the worst thing you could do.

In California, sellers of residential property must give the prospective buyer myriad disclosures. This is true whether or not the seller has ever lived in the property.

If the seller knew or should have known of a defect in the property, the seller will be liable to the buyer for not only the cost of the repair but quite possibly the buyer’s attorney fees and costs as well.

Even if you do everything right, you are at risk of having to hire an attorney to defend you in a lawsuit. The legal bill can easily run above $20,000. Even if you didn’t do anything wrong.

An exception to those laws applies to properties sold during the course of a probate. Because most disclosures are not required during a probate,

See Jones, Page 4

SOLANO REAL ESTATE SCENE

Selling your house for cash in 10 days

Ihave written about flippers before and how most successful full-time house flippers rarely hit homeruns.

A homerun flip is an investment where everything goes right with the transaction from the purchase date until the house is sold in a timely manner for a good-sized profit. Investors that buy houses in as-is condition for all cash deal with a ton of risk, and now more than ever flippers have to deal with a lot of competition.

Speaking of competition, not only are there many local investor flippers that live here in Solano and Yolo County looking for distressed sellers and trashed houses every day, there are also dozens to maybe even hundreds of larger competitors from Wall Street investors – like Invitation Homes and Blackstone – to companies like John Buys Bay Area Houses and Laurel Buys Houses.

It is absolutely amazing to me how many investors are out there looking for sellers with home equity that may be willing to sell their property for cash at 60% to 85% of what they could sell the house for if they hired a local real estate professional that had access to cash or access to a local mortgage broker with private money for bridge financing or staging and renovation costs.

A few years ago, I asked one of my flipper friends, “why did that guy sell you his free and clear house for only $310,000, when he could have spent $40,000 on it and sold it for $500,000 in 70 days”? He replied with, “because he wanted his money in 10 days and he did not have the $40,000 to do the work.”

I guess I watch a lot of TV and listen to the radio in my car, so YouTube and Meta has targeted me as a person interested in real estate. I now see and hear a lot of ads from people like Laurel, who is based in Sacramento, and John, out of Walnut Creek, looking to buy my house for cash in 10 days. So I did some research for my column this week.

Laurel has been doing this for 26 years and is a general contractor that has been featured on Fox 40 and “Good Day Sacramento.” I do not know Laurel but she and her team look pretty good on their website.

John is a fascinating success story about two brothers and a sister that are the founders of

See Porter, Page 4

REFINANCING A MORTGAGE

What it means, how it works

ERIK J. MARTIN BANKRATE.COM

Refinancing your mortgage means replacing the property’s existing mortgage loan with a new one. Homeowners typically refinance when mortgage interest rates have dropped, in order to get a lower rate than they currently have.

While this can result in significant savings over time, it’s important to remember that securing this new loan will incur closing costs – so homeowners will need to calculate their break-even point and stay in the home long enough to reap the savings.

Most homeowners refinance to lower their rate, but you can also refinance to a loan with a shorter or longer term, or refinance from an adjustablerate loan to a fixed rate.

The process of refinancing a mortgage is similar to the process you completed to purchase your home. You can refinance with your current lender if you like, and you may be eligible for discounts or waived fees as an existing customer. But you’re not required to stick with the same company, and just like with your initial purchase loan, it’s smart to shop around for the best deal.

Types of mortgage refinances

There are many types of refinancing, so consider each within the context

of your unique financial situation. Here are some of the most common types:

•Rate and term: A rate-and-term refinance changes either the loan’s interest rate, the loan’s term or both. This is the most common type of mortgage refinancing.

•Cash out: With a cash-out refinance, you use your home equity to withdraw cash to spend. This increases your mortgage debt but gives you money that you can invest or use to fund a goal, like a home improvement project.

•Cash in: Conversely, with a cash-in refinance, you make a lump sum payment to reduce your loan-to-value (LTV) ratio. This cuts your overall debt burden, potentially lowers your monthly payment and could also help you qualify for a lower interest rate.

•No closing cost: A no-closing-cost refinance does not require you to pay closing costs upfront. Instead, those expenses are rolled into the loan –which lowers your upfront costs but means a higher monthly payment and, likely, a higher interest rate.

•Streamline: A streamline refinance accelerates the process for borrowers by eliminating some refinance requirements, such as a credit check or appraisal. It’s available for FHA, VA, USDA and Fannie Mae and Freddie Mac loans.

How does refinancing work?

What happens when you refinance your home? Refinancing is similar to the purchase mortgage application process, in that the lender reviews your finances to assess your risk level and determine your eligibility. Here’s a step-by-step guide to what you can expect:

Step

1: Set a clear financial goal

There should be a good reason why you’re refinancing your mortgage, whether it’s to reduce your monthly payment, shorten your loan term or pull out equity for home repairs or debt repayment.

•What to consider: Take into account both the rate and the length of the new loan. If you reduce your interest rate but restart the clock to another 30 years, you might pay less every month, but you’ll pay more in interest over the life of your loan.

Step 2: Check your credit score and history

You’ll need to qualify for a refinance just as you needed to qualify for your original home loan. The higher your credit score, the better rates lenders will offer you, and the better your chances of underwriters approving your loan. For a conven-

Mortgage, Page 9

Solano real estate transactions

These are the local homes sold recently, provided by California Resource of Lodi. The company can be reached at 209.365.6663 or CalResource@aol.com.

BENICIA

TOTAL SALES: 7

LOWEST AMOUNT: $340,000

HIGHEST AMOUNT: $950,000

MEDIAN AMOUNT: $635,000

AVERAGE AMOUNT: $642,143

1008 East 5th Street - $635,000

12-09-25 [2 Bdrms - 790 SqFt - 1942 YrBlt], Previous Sale: 03-22-21, $536,000

900 Cambridge Drive #53 - $340,000

12-12-25 [2 Bdrms - 1087 SqFt - 1984 YrBlt], Previous Sale: 01-08-07, $330,000

40 La Cruz Avenue - $580,000

12-10-25 [3 Bdrms - 994 SqFt - 1943 YrBlt], Previous Sale: 06-27-17, $392,000

331 Larkin Drive - $875,000

12-08-25 [4 Bdrms - 2192 SqFt - 1975

YrBlt], Previous Sale: 02-20-09, $380,000

400 Reed Court - $700,000

12-08-25 [3 Bdrms - 1603 SqFt - 1980 YrBlt]

175 West Seaview Drive - $950,000

12-12-25 [4 Bdrms - 1913 SqFt - 1979

YrBlt], Previous Sale: 06-28-04, $590,000

117 Sunset Circle #34 - $415,000

12-08-25 [3 Bdrms - 1197 SqFt - 1972 YrBlt], Previous Sale: 07-18-03, $289,000

DIXON

TOTAL SALES: 2

LOWEST AMOUNT: $495,000

HIGHEST AMOUNT: $1,400,000

MEDIAN AMOUNT: $947,500

AVERAGE AMOUNT: $947,500

555 East Creekside Circle - $495,000

12-09-25 [3 Bdrms - 1488 SqFt - 1980

YrBlt], Previous Sale: 04-12-17, $360,000 7694 Sikes Road - $1,400,000

12-12-25 [3 Bdrms - 3573 SqFt - 1991

YrBlt], Previous Sale: 00/1989, $225,000

FAIRFIELD

TOTAL SALES: 20

LOWEST AMOUNT: $405,000

HIGHEST AMOUNT: $980,500. MEDIAN AMOUNT: $590,000

AVERAGE AMOUNT: $611,575

5173 Amberwood Circle - $630,000

12-10-25 [3 Bdrms - 1820 SqFt - 1990

YrBlt]

2715 Blakely Lane - $546,000

12-11-25 [3 Bdrms - 1890 SqFt - 2007

YrBlt], Previous Sale: 12-17-07, $434,500 4933 Brittany Drive - $409,000

12-10-25 [4 Bdrms - 1555 SqFt - 1982

YrBlt], Previous Sale: 01-19-07, $510,000 603 Cement Hill Road - $440,000

12-12-25 [4 Bdrms - 1549 SqFt - 1972

YrBlt], Previous Sale: 03-01-16, $90,000 1009 Chatswood Court - $875,000

12-08-25 [5 Bdrms - 3477 SqFt - 2012 YrBlt], Previous Sale: 07-18-11, $505,000

1427 Couples Circle - $845,000

12-10-25 [5 Bdrms - 3477 SqFt - 2013 YrBlt], Previous Sale: 05-07-13, $554,500

935 Delaware Street - $475,000

12-12-25 [2 Bdrms - 1420 SqFt - 1915 YrBlt], Previous Sale: 04-06-10, $100,000

5348 Discovery Way - $740,000

12-11-25 [4 Bdrms - 2679 SqFt - 2017 YrBlt], Previous Sale: 05-21-20, $645,000

2350 Gull Court - $540,000

12-08-25 [4 Bdrms - 1608 SqFt - 1971 YrBlt]

2734 Laurel Drive - $485,000

12-12-25 [3 Bdrms - 960 SqFt - 1969 YrBlt]

558 Maywood Way - $617,000

12-10-25 [4 Bdrms - 2326 SqFt - 1976

YrBlt], Previous Sale: 11-22-21, $540,000

2326 Ray Venning Court - $730,000

12-08-25 [5 Bdrms - 3085 SqFt - 2015 YrBlt], Previous Sale: 10-05-20, $680,000

2825 Regatta Circle - $764,000

12-08-25 [4 Bdrms - 2773 SqFt - 2002 YrBlt], Previous Sale: 09-26-18, $560,000

3220 Seminole Circle - $980,500

12-10-25 [4 Bdrms - 2648 SqFt - 1989 YrBlt], Previous Sale: 05-08-08, $680,500

727 Shamrock Court - $615,000

12-10-25 [3 Bdrms - 2048 SqFt - 1978 YrBlt], Previous Sale: 11-15-23, $630,000

2008 Silvercrest Drive - $500,000

12-09-25 [4 Bdrms - 1901 SqFt - 1989 YrBlt], Previous Sale: 03-06-03, $385,100

4800 Stoneridge Court - $570,000

12-10-25 [3 Bdrms - 1108 SqFt - 1987 YrBlt], Previous Sale: 08-27-25, $375,000

1018 East Tabor Avenue - $405,000

12-11-25 [3 Bdrms - 1610 SqFt - 1967 YrBlt]

2501 Talisman Court - $610,000

12-09-25 [4 Bdrms - 1856 SqFt - 1986 YrBlt]

1012 Tanager Lane - $455,000

12-12-25 [4 Bdrms - 1376 SqFt - 1969 YrBlt]

RIO VISTA

TOTAL SALES: 3

LOWEST AMOUNT: $375,000

HIGHEST AMOUNT: $489,000

MEDIAN AMOUNT: $460,000

AVERAGE AMOUNT: $441,333

115 Alpine Drive - $489,000

12-08-25 [2 Bdrms - 1837 SqFt - 2014 YrBlt], Previous Sale: 08-13-24, $525,000

814 Elm Way - $460,000

12-12-25 [3 Bdrms - 1255 SqFt - 1960 YrBlt], Previous Sale: 10-12-20, $360,000

237 Longspur Drive - $375,000

12-11-25 [2 Bdrms - 1245 SqFt - 2017 YrBlt]

SUISUN CITY

TOTAL SALES: 2

LOWEST AMOUNT: $500,000

HIGHEST AMOUNT: $605,000

MEDIAN AMOUNT: $552,500

AVERAGE AMOUNT: $552,500

819 Bluejay Drive - $605,000

12-12-25 [3 Bdrms - 1990 SqFt - 1978 YrBlt], Previous Sale: 03-28-23, $580,000

631 Klamath Way - $500,000

12-10-25 [4 Bdrms - 1934 SqFt - 1985 YrBlt]

VACAVILLE

TOTAL SALES: 10

LOWEST AMOUNT: $478,500

HIGHEST AMOUNT: $920,000

MEDIAN AMOUNT: $617,500

AVERAGE AMOUNT: $627,400

790 Arbor Oaks Drive - $574,000

12-12-25 [3 Bdrms - 1657 SqFt - 1978 YrBlt], Previous Sale: 04-25-16, $350,000

396 Beelard Drive - $478,500

12-10-25 [3 Bdrms - 1602 SqFt - 1967 YrBlt], Previous Sale: 12-12-19, $400,000

113 Chinook Court - $775,000

12-12-25 [4 Bdrms - 1889 SqFt - 1976 YrBlt], Previous Sale: 10-28-05, $584,800

1057 Davis Street - $635,000

12-12-25 [4 Bdrms - 2754 SqFt - 1980

YrBlt], Previous Sale: 05-02-18, $240,000

218 Donegal Court - $610,000

12-12-25 [4 Bdrms - 1796 SqFt - 1988 YrBlt], Previous Sale: 02-20-06, $490,000

584 Fruitvale Road - $625,000

12-08-25 [5 Bdrms - 2125 SqFt - 1976

YrBlt], Previous Sale: 04-19-18, $505,000

314 Fruitvale Road - $645,000

12-10-25 [4 Bdrms - 2110 SqFt - 2021

YrBlt], Previous Sale: 06-07-21, $582,500

155 Hartford Avenue - $501,500

12-11-25 [3 Bdrms - 1318 SqFt - 1975 YrBlt]

790 Morissette Way - $510,000

12-12-25 [2 Bdrms - 1048 SqFt - 1988

YrBlt], Previous Sale: 05-28-21, $495,000

903 Rio Grande Drive - $920,000

12-12-25 [4 Bdrms - 3368 SqFt - 2002

YrBlt], Previous Sale: 07-11-22, $900,000

VALLEJO

TOTAL SALES: 18

LOWEST AMOUNT: $255,000

HIGHEST AMOUNT: $1,575,000

MEDIAN AMOUNT: $507,000

AVERAGE AMOUNT: $536,444

152 12th Street - $420,000

12-12-25 [3 Bdrms - 1301 SqFt - 1926 YrBlt], Previous Sale: 05-17-10, $145,000 1348 Beach Street - $1,575,000

12-11-25 [3 Bdrms - 1384 SqFt - 1936 YrBlt], Previous Sale: 04-25-13, $176,000

739 Benicia Road - $436,000

12-09-25 [2 Bdrms - 1297 SqFt - 1924 YrBlt], Previous Sale: 12-18-00, $138,000 313 Concord Street - $515,000 12-08-25 [5 Bdrms - 1352 SqFt - 1950 YrBlt], Previous Sale: 07-31-25, $352,000

408 Coughlan Street - $275,000

12-09-25 [3 Bdrms - 1204 SqFt - 1917 YrBlt], Previous Sale: 12-20-12, $165,000

218 Franciscan Drive - $420,000

12-10-25 [3 Bdrms - 1908 SqFt - 1961 YrBlt], Previous Sale: 10-08-03, $410,000

1136 Georgia Street - $555,000 12-12-25 [4 Bdrms - 2196 SqFt - 1911 YrBlt], Previous Sale: 12-10-04, $469,000 1201 Glen Cove Parkway #514$255,000

12-09-25 [1 Bdrms - 665 SqFt - 1992 YrBlt], Previous Sale: 12-02-11, $63,000

1406 Granada Street - $551,000

12-12-25 [4 Bdrms - 1808 SqFt - 1978 YrBlt], Previous Sale: 00/1991, $174,000

670 Henry Street - $530,000

12-08-25 [3 Bdrms - 1068 SqFt - 1942 YrBlt], Previous Sale: 06-03-25, $312,000

111 Inca Court - $515,000

12-12-25 [3 Bdrms - 1149 SqFt - 1955 YrBlt]

236 Los Gatos Avenue - $425,000

12-10-25 [3 Bdrms - 900 SqFt - 1954

YrBlt], Previous Sale: 10-23-19, $350,000 1046 Maple Avenue - $355,000

12-12-25 [2 Bdrms - 816 SqFt - 1949 YrBlt], Previous Sale: 03-23-15, $225,000

350 Notre Dame Drive - $625,000

12-09-25 [4 Bdrms - 1922 SqFt - 1979 YrBlt]

132 Peach Street - $535,000

12-11-25 [4 Bdrms - 1436 SqFt - 1977 YrBlt], Previous Sale: 10-18-99, $159,750 1224 Sonata Drive - $385,000

12-10-25 [2 Bdrms - 1238 SqFt - 2010 YrBlt], Previous Sale: 09-08-13, $286,000

125 Spinnaker Way - $499,000

12-10-25 [3 Bdrms - 1808 SqFt - 1980 YrBlt], Previous Sale: 00/1991, $167,000 4180 Summer Gate Avenue$785,000 12-12-25 [4 Bdrms - 2366 SqFt - 2003 YrBlt], Previous Sale: 06-02-21, $800,000t

From Page 3

Zoom RE. These young people – brothers Or and Yoav, and sister Michal Kirshenboim – started this real estate investment company 10 years ago and bought their first home in Oakland. They now have offices in sevem markets across the country.

John Buys Houses has been on NBC, CBS and Forbes.The Zoom Re website shows their headquarters are in Tel Aviv, Israel, while John Buys Bay Area Houses is in Walnut Creek. According to the website, they have closed more than 2,000 homes and now have a real estate portfolio of more than $100 million.

Bottom line folks, before a person sells a trashed or inherited house, there is absolutely no downside or cost in calling a local mortgage professional or Realtor for advice.

Jim Porter, NMLS No. 276412, is the branch manager and senior loan adviser of Solano Mortgage, NMLS No. 1515497, a division of American Pacific Mortgage Corporation, NMLS No. 1850, licensed in California by the Department of Financial Protection and Innovation under the CRMLA / Equal Housing Opportunity. Jim can be reached at 707-449-4777.

From Page 2

you won’t have any personal liability to the buyer.

So by transferring the property to your name you are giving up all of the legal protection you enjoy as the executor. Frankly, there’s no reason to do that since you indicated you and your sister want to sell the house anyway.

Contact an experienced estate planning attorney to handle the probate before you sign anything.

Tim Jones, Esq., is a real estate attorney in Fairfield. If you have a real estate question you would like to have answered in this column, you can send an email to AllThingsRealEstate@ TJones-Law.com.

ON GARDENING

There’s magic in these ever-changing lantanas

While we all sit under the spell of Old Man Winter (no kin, I promise) I thought I would share three plants that I con sider to be magical in the landscape. They are all three Lus cious lantanas but they are like magic as you prepare to design your flower border for the new year.

The flowers I am talking about are Luscious Royale Cosmo, Luscious Basket Tange glow and Luscious Berry Blend. The three of them have com bined for 57 awards from North to South and I assure you there are a passel of “Perfect Score” trophies. When you look at the list, know that Royale Cosmo and Basket Tangeglow are about the same at 26 inches tall and 24 inches wide, while Berry Blend is slightly larger: 30 inches tall and wide.

If you are like many gardeners, you are already fretting. Will this flower go with that one, from the standpoint of color, in this year’s garden? This is where the magic comes in. Let’s look at it from a broad perspective. You’ve most likely been taught that you can’t combine orange and pink. Yet at some time you will see those together in some clusters of all three varieties, even if Proven Winners doesn’t say so.

The truth is, you see even more colors as new florets open and others age. You see more colors as temperatures and light flex or modify. So, from the standpoint of color planning, I say that no matter which partners you choose, there will be times in the season when you will look like a design color guru. They will magically come

together, and you will be out there with camera in hand. These clusters of tiny florets are indeed like a kaleidoscope of ever-changing color throughout the day. These three varieties don’t get rated for pollinators, but The Garden Guy, who is a former director of the National Butterfly Center in Mission, Texas, can tell you these are champions for butterflies and hummingbirds. What will you plant with your lantanas? I love blue flowers like Supertunia Mini Vista Indigo petunia, Rockin Playin’ The’ Blues and Rockin Blue Suede Shoes salvia. Like you, I was worried about pink shades, but the more shocking the color the better. The new Supertunia Mini Vista Pink Cloud will make a great filler in your mixed containers. But I treasure chartreuse foliage like ColorBlaze Lime Time or Mini Me Chartreuse coleus as partners too.

See Winter, Page 6

How to budget for home projects

Budgeting is one of the most important skills a homeowner can have. Planning ahead and budgeting for home projects can help prevent unexpected costs and ensure your projects go smoothly from start to finish.

The first step when creating a budget is to evaluate the current state of your home and determine which projects need to be completed and when. Walk around your home as if you were a buyer, with a critical eye for things you want or need to change. Write down every potential project you want to complete – no project is too small (or large!).

Once you have your full project list, you can sort the projects from most to least important. Structural and safety projects, like roof repairs, smoke detector replacements, or rewiring, should be at the top of the list. Maintenance projects, like HVAC tuneups and gutter cleaning should be in the middle

of the list. Finally, aesthetic projects, like painting, new countertops or updated fixtures, should be lower on the list. Then, do some research to figure out roughly how much each of these projects could cost. This is also the time you should determine how much you want to set aside for your home projects this year.

Many homeowners forget to set aside extra money for unexpected costs and emergency repairs. A good rule of thumb is to set aside 1% of the value of your home each year for maintenance and repairs. You should also set aside an additional 10% for each project in case unexpected costs pop up, like fixing water damage in the middle of a bathroom renovation. For example, if you tell your contractor that your project budget is $1,000, plan for the project to cost around $1,100.

Compare your project list to your budget to determine which projects fit within your budget. Try to complete as many

Winter

From Page 5

Don’t forget about Sweet Caroline ornamental sweet potatoes. All the Luscious lantanas are rated as zone 9 and warmer perennials and annuals elsewhere. I garden in zone 8 and have not lost one yet. I walked out on the patio this morning however and it was 18 degrees with a lot more cold coming, so perhaps I will be in the lantana shopping business. The key to survivability is good soil drainage. Boggy soil partnered with bone chilling cold is not a good recipe. As mine have survived

several winters they are all in the upper range of expected height and width.

So, when you think about the Luscious Berry Blend tag saying shades of fuchsia to orange and yellow, just imagine the journey getting there. What other colors might you see? These three Luscious lantanas are magical.

Norman Winter is a horticulturist, garden speaker and author of “Tough-as-Nails Flowers for the South” and “Captivating Combinations: Color and Style in the Garden.” Follow him on Facebook @NormanWinter TheGardenGuy. He receives complimentary plants to review from the companies he covers.

of the top-priority (structural and safety) projects as possible. This will ensure you do the most important projects before moving on to the less critical, but often more fun, projects.

If you are on the fence about whether a large project (roof replacement, foundation repair, etc.) fits in your budget this year, contact a contractor. Largescale project costs depend on a lot of factors, so it’s important to get a pro to quote your specific projects. Getting an in-person estimate from a local pro will give you the best information on your expected cost.

Staying on top of budgeting is the key to a well-maintained home. Budgeting consistently allows you to take better care of your home and avoid emergency costs.

Tweet your home care questions with #AskingAngi and we’ll try to answer them in a future column.

REAL ESTATE

Mortgage

From Page 3

tional refinance, a credit score of 620 or higher is generally needed for approval.

How does refinancing affect your credit?

•What to consider: While there are ways to refinance your mortgage with bad credit, spend a few months boosting your credit score if you can before contacting lenders. If you’re concerned about hurting your score while comparing refinance offers, try to shop for a refinance within a single 45-day window. Any credit pulls in this timeframe will only count as one inquiry.

Step 3: Determine how much home equity you have

Your home equity is the total value of your home minus the amount you still owe on your mortgage. Check your latest mortgage statement to see your current balance; then, check home search sites or have a professional appraisal to estimate your home’s value. Your home equity is the difference between the two. For example, if you still owe $250,000 on your home, and it’s worth $325,000, your home equity is $75,000.

•What to consider: You’ll get better rates and fewer fees (and won’t have to pay for private mortgage insurance) if you have at least 20 percent equity in your home. The more equity you have in your home, the less risky the loan is to the lender.

Step

4: Shop multiple mortgage lenders

Getting quotes from at least three mortgage lenders can help you maximize your savings when refinancing a mortgage. Once you’ve chosen a lender, discuss when it’s best to lock in your rate so you won’t have to worry about rates climbing before your refi-

nance closes.

•What to consider: In addition to comparing interest rates, pay attention to the various loan fees and whether they’ll be due upfront or rolled into your new mortgage.

Step 5: Get your paperwork in order

Gather recent pay stubs, tax returns, bank/brokerage statements and any other financial documents your lender requests. Your lender will also review your credit score and net worth, so be sure to disclose all your assets

Refinancing your mortgage is a significant financial decision, and knowing when to refinance is key. If you’re planning to remain in your home for years to come, there are many instances in which a refi can make sound financial sense.

and liabilities upfront.

•What to consider: Keep your documentation organized and at-the-ready throughout the refinancing process – being able to find things easily and answer questions quickly helps things run more smoothly.

Step 6: Prepare for the home appraisal

Mortgage lenders typically require a home appraisal (just like when you bought your house) to determine its market value. A professional appraiser will assess your home based on criteria and comparisons to similar homes in your area.

•What to consider: A refinance appraisal will run you a few hundred dollars. Let the lender and appraiser know of any improvements, additions or major repairs you’ve made since purchasing your home, as they will likely affect the final valuation.

Step 7: Come to the closing table

You’ll receive a closing disclosure and loan estimate itemizing the closing costs that must be paid

to finalize the loan. These payments will be made at closing and typically require cashier’s checks or money orders.

•What to consider: You may be able to finance these costs, which can amount to several thousand dollars, to save on your upfront outlay. But you will likely eventually pay more by doing so. If you can afford to, it makes more financial sense to pay closing costs upfront.

Step 8: Keep tabs on your loan

Some lenders are willing to offer you a lower rate if you sign up for autopay, but you’ll still want to keep an eye on things just in case. Store copies of your closing paperwork in a safe place.

•What to consider: Your lender or servicer might resell your loan on the secondary market either immediately after closing or years later. This is common and nothing to be concerned about, but it means you’ll owe mortgage payments to a different company, so keep an eye out for mail notifying you of such changes. The loan terms themselves shouldn’t change, though.

Pros and cons of mortgage refinancing

Pros

•You could secure a lower interest rate.

•You could lower your mortgage payment and create more space in your monthly budget.

•You could decrease your loan’s term and pay it off sooner.

•You could tap into your home’s equity.

•You could consolidate debt, such as student loans or credit card bills, into one payment.

•You could change from an adjustable-rate to a more predictable fixed-rate mortgage.

•You might be able to cancel private mortgage insurance premiums.

Cons

•You’ll have to pay closing costs.

•You might have a longer

loan term, increasing your interest costs and delaying your payoff date.

•You could have less equity in your home if you take cash out.

•Your credit score will take a (temporary) hit.

•Most refinances won’t affect your property taxes, but completing a remodel with a cash-out refinance can increase your home’s assessed value, which could mean a higher tax bill.

•If you’ve paid off a significant chunk of your mortgage, refinancing might not make financial sense.

When to consider mortgage refinancing

Refinancing your mortgage is a significant financial decision, and knowing when to refinance is key. If you’re planning to remain in your home for years to come, there are many instances in which a refi can make sound financial sense – including lowering your interest rate, extending your loan term to lower monthly payments or using the equity you’ve built to finance home improvements.

“The general rule of thumb is that you need to cut at least a full percentage point from your rate for refinancing to make sense. But the decision varies depending on your situation,” says Jeff Ostrowski, writer and housing market analyst at Bankrate.

“Maybe you have an FHA loan and refinancing would let you get out of mortgage insurance – that savings could nudge you toward a refi. Or perhaps you live in a state that taxes refinances – that could push the costs to a point that it doesn’t make sense.”

Knowing when to consider a refinance also depends on the general financial climate. If refinancing will mean getting a significantly higher interest rate on your mortgage, it’s probably not a good idea.

“For the small group of homeowners who took loans at 8% in 2023, now is a great time to refinance,” says Ostrowski. “For most homeowners, though, the moment has yet to arrive.”

FAQs

• What does it cost to refinance a mortgage? Closing costs on a mortgage refinance can run between 2% and 5% of the loan amount. These line items often include discount points, your lender’s origination fee and an appraisal fee to evaluate your home’s worth. You’ll need to calculate the break-even point of all these expenses and decide whether you plan to stay in your home long enough to recoup them and benefit from the refinance savings.

• Is a second mortgage the same as refinancing? No, a second mortgage and a refinance are not the same thing. A refinance replaces your current mortgage with a new one, and you’ll still only have a single loan – and a single payment – on the property. A second mortgage, however, typically involves taking out equity you’ve built up in your home and using it elsewhere, such as with a home equity loan. A second mortgage adds a second monthly payment you’ll need to budget for.

• How soon after closing can I refinance? Once you close on a new home, you can’t refinance right away – there is a seasoning period that you must wait out first. The exact amount of time will usually depend on your loan type: FHA loans require you to wait six months, for example. Another limiting factor when refinancing a mortgage is the amount of equity you’ve built. In general, you’ll need at least 20 percent equity before being able to refinance.

Key takeaways

•Refinancing your mortgage means replacing your home’s current mortgage loan with a new one.

•Homeowners typically refinance to lower their interest rate, but there are other reasons to consider it as well.

•Refinancing requires paying closing costs, which can be extensive, so it’s important to determine whether you’ll stay in the home long enough to recoup the cost.

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