Refinance Counseling


Minnesota state law requires homeowners paying off a special mortgage to receive counseling.  A special mortgage is defined as a residential mortgage loan originated, subsidized, or guaranteed by or through a state, tribal, or local government, or nonprofit organization, that has one or more of the following nonstandard payment terms:

          •  payments vary with income

•  payments of principal or interest are not required or can be deferred under specified conditions 

•  principal or interest is forgivable under specified conditions 

•  no interest or an annual interest rate of two percent or less 

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What is Refinance Counseling?

During the counseling session you can expect to discuss the following:

          •  Purpose of the proposed refinance. 

•  Advantages of the special mortgage. 

•  How to determine if you can refinance without paying off the special mortgage. 

•  Comparison of existing mortgage(s) and the proposed mortgage(s). 

•  Benefits and costs of refinancing
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What do I need to bring to Refinance Counseling?

     •  Information about the proposed mortgage:
              (Note: Your lender will provide you with this information when you submit a loan application.)
               •  Truth-in-Lending Disclosure

•  Good Faith Estimate 

•  Monthly payment, details about whether or not taxes and insurance are included in the monthly payment 

•  Term (ex. 30 year mortgage) 

•  Interest rate (if adjustable rate mortgage (ARM), provide details of how and when it adjusts) 

•  Appraisal (if completed) 

•  Projected closing date 

•  Loan officer name and contact information

•  Income verification (ex. check stubs)

•  Copy of a recent credit report (if available)

•  Existing mortgage(s) information 
    (Note: If you have more than one mortgage, you will need to provide this for each): 
                              •  Copy of the most recent monthly statement

•  Lender/servicer name 

•  Term (ex. 30 year mortgage) 

•  Interest rate (if adjustable rate mortgage (ARM), provide details of how and when it adjusts) 

•  Monthly payment (include details about whether or not taxes and insurance are included in the monthly payment) 

•  Pre-payment penalty details (sometimes you will incur a fee if you pay off your mortgage early) 

•  Payoff amount (amount needed to entirely payoff your loan)

Note: Most of the information about your existing mortgage(s) is on the note, mortgage and Settlement Statement (Also known as the HUD-1) so the counselor may ask you for copies of these documents.
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How much does Refinance Counseling cost?

Organizations may charge for Refinance Counseling.  Please ask how much when you set up an appointment.

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