What Are the Costs of Refinancing?
The fees described below are the charges that you most likely will encounter in a refinance. Application Fees This charge imposed by your lender covers the initial costs of processing you loan request and checking your credit report. Title Search and Title Insurance This charge will cover the cost of examining the public record to confirm ownership of the real estate. It also covers the cost of a policy, usually issued by a title insurance company that insures the policyholder in a specific amount for any loss caused by discrepancies in the title to the property. Be sure to ask the company carrying the present policy if it can re-issue your policy at a re-issue rate. You could save up to 70 percent of what it would cost you for a new policy. Lender’s Attorney’s Review Fees The lender will usually charge you for fees paid to the lawyer or company that conducts the closing for the lender. Settlements are conducted by lending institutions, title insurance companies, escrow companies, real
Refinancing your current home loan is often a great way to get into a lower interest rate, lower your monthly mortgage payments, or take out some needed cash for various projects. Before you jump into a new loan however, you should realize that, just like with your original mortgage, this new refinance loan will cost you some upfront fees. The new loan may or may not be worth the costs, depending on how long you plan to stay in your home and whether or not the new loan has a prepayment penalty. Take a look at some of the traditional fees associated with a refinance home loan. Points/Origination Fees One point is equal to one percent of the loan total. Lenders will sometimes require you to pay points (which go directly to them) and sometimes they will simply give you the option of paying a point or two in order to buy down the interest rate. For example, a lender may ask you to pay two points in exchange for dropping the interest rate on your loan by 0.5 percent. On a $200,000 loan thou
The fees described below are the charges that you most likely to encounter in a refinancing. Application Fees This charge imposed by your lender covers the initial costs of processing you loan request and checking your credit report. Title Search and Title Insurance This charge will cover the cost of examining the public record to confirm ownership of the real estate. It also covers the cost of a policy, usually issued by a title insurance company, that insures the policy holder in a specific amount for any loss caused by discrepancies in the title to the property. Be sure to ask the company carrying the present policy if it can re-issue your policy at a re-issue rate. You could save up to 70 percent of what it would cost you for a new policy. Because costs may vary significantly from area to area and from lender to lender, the following are estimates only. Your actual closing costs may be higher or lower than the ranges indicated below.
