Novation is a legal process by which your transfer your loan to some one else. It free's you from making any more payments to the loan, but needs to be approved by the lender.
Not sure what benifits they have over refinace.
Not sure what benifits they have over refinace.
I know that - I'm asking about fees regarding one vs. the other
This what I see on the forum.
http://www.mortgagefit.com/discuss/about2085.html
http://www.mortgagefit.com/discuss/about2085.html
hi
lenders do prefer refinance to a simple novation when it comes to changing the name on the loan or adding someone to it. the reason is obviously the financial benefits involved in a refinance. when you refinance a loan, as a borrower you need to pay the lender a closing cost. but when doing a novation, no such closing costs are involved. so, from a lender's point of view a refinance no doubt is far more financially beneficial than a novation.
lenders do prefer refinance to a simple novation when it comes to changing the name on the loan or adding someone to it. the reason is obviously the financial benefits involved in a refinance. when you refinance a loan, as a borrower you need to pay the lender a closing cost. but when doing a novation, no such closing costs are involved. so, from a lender's point of view a refinance no doubt is far more financially beneficial than a novation.
Good poitn Savior. But They will for sure find ways to charge you some money because you are askign them for change.
So the closign cost will be probably called somethign when it comes to Novation. ( Some fancy name).
Do you have any idea what that coudl be and how it is calculated?
So the closign cost will be probably called somethign when it comes to Novation. ( Some fancy name).
Do you have any idea what that coudl be and how it is calculated?
wow
George why wow. Were you surprised or you donot agree with some thing?
I always assume that I do not know everythign.
I always assume that I do not know everythign.
i'm just astounded sometimes.
some of the topics on here shouldn't even come up, and some of the answers are off-topic. forgive me, please.
some of the topics on here shouldn't even come up, and some of the answers are off-topic. forgive me, please.