Signing the Note

• It's at closing -- which can take place in your lender's office, your own home or through a series of faxed document -- that you'll sign your mortgage note. This is an important piece of paper: It spells out exactly how much money you owe on your newly refinanced mortgage loan. The note also lists what your monthly payments will be each month and how many payments you'll make over the lifetime of your home loan. Make sure to study this document carefully before signing it. You want to make sure that the figures contained in it are the numbers your loan officer promised you. If the numbers don't match up, don't sign the note until mistakes are corrected or until you get a logical explanation for why your loan amount and monthly payments have changed.
  
  

Deed of Trust

• The deed of trust is another important piece of paper that you'll sign at the closing of your refinance. This documents spells out what the bank can do if you don't make your mortgage payments. This paper, in effect, explains the potential foreclosure process if you fall behind in your loan payments. By signing this paper, you are agreeing to a contract with your bank or lender: If you don't make your payments, the financial institution can take your residence from you.
  
  

Paying the Bill

• Refinances are not free. Expect to pay 3 to 6 percent of your total loan in closing costs and lender fees. At closing you'll either have to pay these costs upfront or roll them into your monthly mortgage payment. Many homeowners opt for the second option; it's not easy coming up with thousands of dollars worth of refinancing costs. By rolling them into their monthly mortgage payments, spreading these costs out over a period of as many as 30 years, homeowners reduce the pain of paying these fees.
  
  

Your New Payments

• Shortly after the closing ends, you'll receive your first bill from your lender in the amount of your new monthly payment. Often, you'll have a month in which you won't have to make a payment. Some lenders will send you a coupon book. You'll have to send the coupons in each month with your mortgage payment by a certain date. Others will simply bill you each month, just like your credit card issuers do.