Refinancing conciderations vary here we focus on some of
the costs?
While fees may vary, here are a few
items you can expect to pay for when refinancing:
Title search and title insurance
The title search will examine public
records to verify ownership.
Title insurance (amount specified)
covers the potential homeowner of any loss due to discrepancies in
the title to the property.
Lender's attorney's review fees
The lender may charge you for attorney
fees relating to closing of the escrow. Another option would be to
hire your own attorney to represent you during the entire
transaction.
Loan origination fees
This fee is charged by the lender to
prepare and evaluate your loan.
Appraisal fees
This fee is for an appraisal to
support and defend the value of the property.
Prepayment penalty fees
This fee is charged for an early
pay-off of an existing loan and varies by state.
Prepayment penalties are not allowed
for certain types of loans, FHA, VA loans,
federally chartered (credit unions) to
name a few. Your existing loan documents will disclose any
prepayment penalty fees.
Some reasons you may want to
refinance…pay off college loan, make home improvements, pay off
credit card debt. Experts will tell you that securing a home equity
loan or mortgage refinance is a wise choice to finance expensive
purchases and/or pay off higher interest debt.
