Refinance Loans

Did you know that some of your closing costs might be tax deductible when you refinance? They are, however there is a trick to it. For you to be able to deduct certain costs associated with a refinance, the loan must close AND fund before the last business day of the tax year.

In Texas, when you refinance your home (homestead) you will sign papers on one day, then allow for three 'business' days (called the rescission period or your right to rescind the loan) and then fund on the next business day thereafter (five business days total).

For homeowners in Texas this becomes tricky due to the Homestead Laws and the loss of time due to days off for the holiday season. Also, in Texas there is an additional 15-day waiting period from application date to the initial closing date IF you have ever taken out a Home Equity loan on your home. Once you have a Home Equity loan on your property, all loans will be considered Home Equity loans for as long as you own the property whether or not you are taking out additional monies.

In the mortgage industry, the end of the year is very hectic due to everyone waiting to the last minute to try to refinance before the end of the year and some do not make the deadline.

If you have not started the refinance process by the end of the SECOND week in November, then you probably will not have enough time to close by the last business refinance closing day which is December 23, 2008 AND fund by the last business day which is December 30, 2008 due to the last minute rush and all the lost working days due to the holiday season with people traveling and taking off.  Some title companies and lenders may allow you to close on Saturday, December 21st, but I would not count on it.

GET STARTED EARLY AND AVOID THE RUSH TO GUARANTEE YOUR TAX ADVANTAGES!!!