What Are the Closing Costs to Refinance a Loan?
Search the Internet for “closing costs loan refinancing,” and you will see sites such as ERate advertising “no cost refinance.” When you go to these sites, you will learn that various loan closing charges have been eliminated, but the costs have shifted elsewhere. Lenders add a quarter- or half-point to the interest rate on the “no-cost” product. You eliminate one-time closing cost charges in exchange for an annual interest rate increase over the life of the loan. You may end up paying more for “no-cost” refinancing than for conventional refinancing with the usual closing costs. Points Unless you opt for the “no cost” product, your lender will charge you points when you refinance. Each point equals 1 percent of the loan amount. You will sometimes find this fee broken into two separate fees, a discount fee you pay to the lender and an origination fee that goes to the broker. You can negotiate the points charged. Non-Recurring Costs When you close the loan (the formal signing process), y
