As soon as you take that first step towards refinancing, you are diving into a Tsunami of information overload. The natural reaction is to shut-down and deal only with the absolutely necessary items and that’s as it should be – we can only absorb so much information at one time.
This article is meant to be revisited along your journey as you have the need/capacity to take on more information. I’ve attempted to organize these items in the same timeline that they’ll surface in along your journey to refinancing. At the end of this article, I have a list of “Trusted Partners,” all of whom I am confident will serve you well.
Homeowners Insurance: We’ll need to fund a new escrow account so that there’s enough money to renew your policy on its next anniversary date. I recommend that you use this opportunity to reassess your insurance coverages and cost, both by discussing these items with your current agent as well as speaking with other agents.
My wife, Heather, sagely observes that insurance is a bet against yourself – it’s something you buy but never want to use. That’s true and it tempts us to buy the least expensive policy we can find. However, I’m reminded every day that that’s not necessarily the wisest choice: our neighbor’s house caught fire in January, 2015, and they didn’t have enough coverage to rebuild it. We’ve been staring at a burned-out and boarded-up shell of a home ever since and it’s proof that buying the right coverage is the smarter choice.
Security System: This is a great time to consider installing or upgrading a security system for your home. I strongly recommend that you stay away from the national brands and buy local. That’s partly because they’ll sell based on value and benefits, rather than fear. As well, my personal experience is that they are better trained, more responsive, and no more expensive.
Mortgage Protection Insurance: Within a month of closing on your refinance, you’ll start getting solicitations from companies wanting to sell you some form of “mortgage protection insurance.” Some of these mailings will look like an overdue bill or say “Final Notice” on the envelope and reference your mortgage lender and loan amount, all to make you call them. Here’s my answer: Throw these away. They are nothing but expensive term life insurance policies. Instead, please review my “Trusted Partners” list at the end of this section for a reliable and trustworthy person to contact about this worthy product.
Wills: You know “it” and I know “it” but nobody does anything about “it.” What am I talking about? Dying. We’re all going to and you really should have a plan in place for how you want your affairs managed. Really.
More important, you want to have a Healthcare Power of Attorney in place so that your wishes may be adhered to if you become incapacitated. Most people I know will say “Just put a pillow over my head and spare me the suffering” but the only way to really ensure that you get the treatment you want is to empower someone to act on your directives.
Kit’s Trusted Partners
|Moving||Sue Kelley (Western CT )
Patrick Greene (Eastern CT )
Daley Moving & Storage (860) 482-8508
Greene Moving & Storage (860) 649-2255
|Homeowners Insurance||Evan Cooper||Bearingstar Insurance (860) 284-5846|
|Security System||Maria Hodgson||Continental Security (860) 675-7222|
|Mortgage Protection Ins||Francis King||MW Financial (860) 677-2600|
|Wills||Neil Kraner||Kraner & Hess (860) 269-6244|
|Carpet/Window Cleaner||Gary Daigle||Decorator’s Choice (860) 997-5989|
|Landscaping||Rick Cowles||Red Oak Landscaping (860) 977-8024|
|Professional Organizer||Regina Sanchez||Regina Sanchez (860) 874-8515|
|CPA||Rick Farina||HL Page & Co (860) 678-0203|