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Refinance Agreement

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REFINANCE AGREEMENT

This Refinance Agreement (the Agreement) is made and entered into as of Effective Date: by and between Lender Name: , with primary address: , and Borrower Name: , with primary address: .

RECITALS

WHEREAS, Borrower executed and delivered to the Original Lender a loan evidenced by Original Loan Number: (the Original Loan); and

WHEREAS, Borrower desires to refinance and restructure the indebtedness under the Original Loan and Lender is willing to make a new loan to Borrower on the terms set forth in this Agreement.

DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings set forth below: "Loan" means the refinance loan made by Lender to Borrower as described in Section titled Loan Terms; "Maturity Date" means the date on which the outstanding principal and accrued interest under the Loan become due and payable.

LOAN TERMS

Payment Frequency:

REPAYMENT SCHEDULE (SUMMARY)

List an initial portion of the scheduled payments below. This summary does not replace the full amortization schedule attached to the Loan documents.

Payment # Due Date Principal Interest Total Payment

SECURITY

Nature of Loan Security:

PREPAYMENT

Prepayment permitted:

If prepayment penalty applies, Penalty: % of prepaid principal.

DEFAULT, REMEDIES AND REMEDIAL FEES

Borrower shall be in default upon failure to make any scheduled payment within a Grace Period of days after the due date, bankruptcy, insolvency, material breach of covenants or representations, or assignment for the benefit of creditors.

Upon default, Lender may declare the entire principal and accrued interest immediately due and payable and pursue all remedies permitted by law and this Agreement, including foreclosure or repossession of Collateral where applicable.

Late Payment Fee: or % of overdue amount, whichever is greater.

Default Interest Rate: % per annum above the contractual rate, to the maximum extent permitted by law.

REPRESENTATIONS, WARRANTIES AND COVENANTS

Borrower represents and warrants that all information provided to Lender in connection with the Loan is true, complete and accurate; Borrower has full power and authority to enter into this Agreement; there are no undisclosed defaults under any material agreement; and Borrower will comply with all covenants contained herein until the Loan is paid in full.

FEES, COSTS AND PAYMENT INSTRUCTIONS

Payment Method:

CONDITIONS PRECEDENT TO LENDER'S OBLIGATION

NOTICES

GOVERNING LAW; MISCELLANEOUS

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to choice of law principles. Any amendments must be in writing and signed by both parties.

ACKNOWLEDGEMENTS

Each party acknowledges receipt of a copy of this Agreement and certifies that the person signing on its behalf is duly authorized to execute this Agreement.

Lender Printed Name:

By (Signature):

Date:

Borrower Printed Name:

By (Signature):

Date:

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What a Refinance Agreement Is and When It Applies

A Refinance Agreement is a legal contract that replaces an existing mortgage or deed of trust with a new loan under revised terms. It documents the borrower, lender, loan amount, interest rate, repayment schedule, and any payoff instructions for the prior loan. The agreement often includes a new promissory note, security instrument (mortgage or deed of trust), closing disclosures, and instructions to release the prior lien once the payoff posts. Refinance transactions can be cash-out, rate-and-term, or streamline modifications and require coordination among lender, title company, and county recorder.

Why a Clear Refinance Agreement Matters (Legal and Practical Benefits)

A well-prepared Refinance Agreement clarifies borrower and lender obligations, ensures correct payoff and lien release, and reduces post-closing disputes. Proper execution preserves legal enforceability under ESIGN (15 U.S.C. ch. 96) and UETA where applicable, supports timely recording, and limits exposure to liability from technical defects.

Why a Clear Refinance Agreement Matters (Legal and Practical Benefits)

Who Typically Prepares and Signs a Refinance Agreement

Several parties commonly prepare, review, or sign refinance agreements depending on role and transaction complexity.

  • Borrowers: individuals or entities securing the new loan and agreeing to new terms; must provide identity and income documentation and sign all borrower blocks.
  • Lenders and servicers: prepare loan terms, disclosures, and payoff instructions; responsible for verifying title and funding the refinance.
  • Title companies and closing agents: coordinate recording, lien releases, escrow disbursements, and ensure satisfactions of prior lien.

Each participant has specific responsibilities; understanding those roles helps prevent delays and compliance issues at closing.

Core Sections Every Professional Refinance Agreement Should Include

A thorough Refinance Agreement organizes the transaction into discrete legal and operational sections so each party knows duties, timelines, and remedies.

Parties

Identifies borrower(s), lender, servicer, and any guarantors with full legal names and entity types to avoid identity mismatches and title problems.

Loan Terms

States principal, interest rate, amortization, payment schedule, prepayment penalties (if any), and maturity date so obligations are unambiguous.

Security Instrument

Describes mortgage or deed of trust, legal description of the property, and conditions for recording and lien release following payoff.

Payoff Instructions

Specifies how the prior lender will be paid, escrow handling, and the exact amount needed to satisfy the existing lien at funding.

Disclosures

Includes federally required TILA/TRID and any state disclosures, closing statement line items, and consumer rescission language when applicable.

Representations

Contains borrower warranties, governing law clause, dispute resolution provisions, and signatures for enforceability.

Essential Data Elements to Provide in the Refinance Agreement

Borrower Name: Full legal name(s)
Property Description: Legal description and address
Loan Amount: Principal sum
Interest Rate: Fixed or adjustable rate
Maturity Date: Loan term end date
Payoff Details: Prior lender account info

Step-by-Step: Filling Out and Executing a Refinance Agreement

Follow this sequential checklist to complete the agreement, confirm funding readiness, and schedule recording with the title company or county recorder.

  • 01
    Gather documents: Collect title report, IDs, payoff statement, and recent mortgage statement.
  • 02
    Populate fields: Enter borrower, loan, and property details using the fillable fields guide.
  • 03
    Review disclosures: Confirm TRID/TILA items and any state-required language are correct.
  • 04
    Sign and notarize: Execute signatures, obtain notarization or RON if authorized, and return to closing agent.

How to Configure an Online Refinance Signing Workflow

Set up roles, authentication, and routing before sending the document to preserve signing order and legal evidentiary value.

Field Configuration
Signer Roles Assign borrower, lender, and closing agent roles with required fields.
Authentication Select email link, SMS code, or stronger ID verification.
Routing Order Enforce sequential signing for lender approval then borrower.
Audit Trail Enable IP, timestamp, and event logging for evidentiary support.

Technical Options for Digital Signing and eSubmission

Confirm the chosen platform supports audit trails, exportable signed PDFs, and any required integrations with title or loan origination systems.

  • Authentication: Email, SMS, or KBA options
  • Notarization: In-person or RON where permitted
  • File formats: PDF/A or PDF preferred

Where to Send the Signed Refinance Agreement and Related Documents

After signatures and notarization, distribute executed documents to the parties that must act to fund, record, and update servicing records.

  • Lender: Receives fully executed loan package to fund the refinance.
  • Title Company: Prepares closing package, records deed of trust and releases prior lien.
  • County Recorder: Records the new security instrument and lien release in public records.
  • Loan Servicer: Updates payment account and sends payoff confirmation to prior lender.

Key Timing Considerations and Regulatory Deadlines

Refinance workflows are time-sensitive; certain federal rules create mandatory windows that affect closing and rescission rights.

Right of rescission:

Three business days for eligible consumer refinances (TILA rescission, 15 U.S.C. §1635).

Closing disclosure timing:

Provide required loan disclosures within TRID timelines before consummation.

Recording:

Record the new instrument promptly after funding to protect priority; county timing varies.

Payoff timing:

Prior lien should be satisfied within the lender-specified payoff date to avoid holdbacks.

Document retention:

Keep complete closing package per retention rules and lender requirements.

Typical Refinance Milestones from Application to Recording

Track these stages to coordinate appraisal, underwriting, closing, and post-closing recording activity without surprises.

01

Application Submitted

Borrower provides loan application and supporting documents for underwriting review.

02

Underwriting & Appraisal

Underwriter verifies credit and valuation; conditions are cleared prior to approval.

03

Closing and Funding

Parties sign documents, funds disburse, and payoff of prior lender occurs.

04

Recording and Release

Title company records new security instrument and files prior lien release.

Common Mistakes That Delay Refinance Closings

  • Incorrect borrower name on documents causing title or recording rejection and schedule delays.
  • Outdated payoff amounts provided at closing leading to funding gaps and re-signing needs.
  • Missing notarization or improper notary jurisdiction for the signatory’s location invalidating recording.
  • Failure to follow TRID or TILA timing requirements triggering rescission exposures or re-disclosures.

Practical Risks and Consequences of an Incorrect Refinance Agreement

Recording Rejection: Delays lien priority
Title Defect: Insurance issues, litigation risk
Funding Delay: Additional fees or rate changes
Rescission Exposure: Consumer cancellation rights
Tax Reporting: Incorrect 1098 handling
Privacy Violation: HIPAA/GLBA data risks

Typical eSignature Vendor Comparison for Refinance Document Workflows

Compare essential commercial eSignature criteria for executing refinance packages. signNow is listed first per comparative format requirements.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions About Refinance Agreements

Answers to common questions about execution, notarization, e-signing, and post-closing steps for refinance transactions.


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