Search thousands of topics on CostHelper.com

BROWSE ALL TOPICS >> babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business sports weddings
CostHelper > Personal Finance  > Real Estate > Refinancing a Mortgage

Refinancing a Mortgage Cost


How Much Does Refinancing a Mortgage Cost?

 
low costLow: $2,000 or lesshigh costHigh: 3-6% of total
post Post  
  Typical costs:
  • Refinancing a mortgage can cost as much as 3 percent to 6 percent of the amount borrowed, or $4,500-$9,000 to set up payments on a debt of $150,000, according to BSCAlliance.com[1] . That estimate includes a $75-$300 application fee, a $150-$400 appraisal, a $175-$350 home inspection, $75-$200 for lenders' attorneys fees and other charges.
  • Companies such as INGDirect.com[2] don't charge application, processing or other fees, lowering the cost of refinancing to about $1,500-$2,500. The trade-off is usually slightly higher interest rates.
Related articles: Closing a Home, Selling a Home, Homeowner's Insurance, Flood Insurance

What should be included:
  • Refinancing simply means replacing your current mortgage with a new one that has (you hope) better terms, such as a significantly lower interest rate, avoiding a balloon payment, cutting total costs by repaying the loan more quickly or other factors. FederalReserve.gov gives step-by-step instructions for finding the best possible mortgage, including a glossary of common terms and a detailed worksheet for comparing potential mortgage offers.
  • Some company-sponsored online mortgage "calculators" give a somewhat rosy view of the benefits of refinancing; MtgProfessor.com[3] lists the payoffs and potential hazards of refinancing, and provides a break-even calculator to accurately assess your situation. This site also provides a range of mortgage calculators[4] for almost every possible circumstance.
  • Traditional mortgage brokers make a profit by marking up the wholesale mortgage rates and consumers don't know the true cost of the loan until after the application is submitted. A new trend is upfront mortgage brokers, who disclose their total fee in advance, in writing; Sideroad.Com[5] gives an overview.
Additional costs:
  • Some "predatory lenders" urge refinancing when it's not in the homeowners' best interests or charge fees for unnecessary or nonexistent products or services; HUD.gov[6] lists tips to avoid loan fraud.
Discounts:
  • Refinancing some existing FHA mortgages can be streamlined[7] , which means less documentation (such as no appraisal and therefore no appraisal fee)--but setting up the new mortgage still costs money. The amount depends on the size of the loan and the lender's terms.
  • Your current loan payment may include mortgage insurance, which covers your lender, not you, and runs $500-$1,200 annually for a $200,000 mortgage You might be able to cancel this insurance when refinancing if your equity in your home is more than 20 percent; MtgProfessor.com[8] gives an overview.
Shopping for refinancing a mortgage:
  • MtgProfessor.com [9] gives a quick overview of possible hazards and four approaches: responding to a solicitation, using an upfront mortgage broker, using a fixed-market lender and shopping online. Some websites suggest applying to your current lender first, because the it will offer the best deal in order to keep your business.
  • Sites such as MortgageLoan.com[10] and LendingTree.com[11] provide several quotes. Be sure an online broker represents a number of lenders and not just one; Sideroad.com[12] gives tips and guidelines for using online services.
  • The Upfront Mortgage Brokers Association[13] explains this type of service and providers referrals to its members.
post Post  
CostHelper News


7 Fireplace and Wood Stove Safety Steps To Do This Week
Gathering around a wood stove or fireplace on a cold winter night can be wonderful experience, but it's crucial to not take basic safety for granted. || Posted November 12 2013


10 Quick and Inexpensive Home Makeover Projects To Do Before Holiday Guests Arrive
Having friends and family gather for the holidays is traditionally considered a heartwarming idea -- but the mere thought of it can also be heart-stopping if they're planning on staying at your place, and you realize your home is looking less than it. || Posted November 18 2013

‣ All CostHelper Blog Posts


What People Are Paying - Recent Comments


 

Comment On Your Experience With Refinancing a Mortgage
 
Subject:  *
Amount Spent:  *
Company: Type of Mortgage: 
Points: Interest Rate: 
Comments: 
Purchased:  Year: 
City:  * State:  *
 
Information about you:
Email:  * Email addresses are not displayed.
Name:  This is the name we'll display with your post.
me on this computer
*=required field.
 



External Resources:
  1.  www.bcsalliance.com/y_mortgage_refinance.html
  2.  /home.capitalone360.com/
  3.  www.mtgprofessor.com/Tutorials2/refinance_to_reduce_cost.htm
  4.  www.mtgprofessor.com/calculators.htm
  5.  www.sideroad.com/Mortgage/upfront_mortgage_broker.html
  6.  portal.hud.gov:80/hudportal/HUD?src=/program_offices/housing/sfh/buying/loanfraud
  7.  portal.hud.gov:80/hudportal/HUD?src=/program_offices/housing/sfh/buying/streamli
  8.  www.mtgprofessor.com/A%20-%20PMI/how_do_i_cancel_pmi_(i).htm
  9.  www.mtgprofessor.com/Default.htm
  10.  www.mortgageloan.com/refinance-mortgage
  11.  /www.lendingtree.com/
  12.  www.sideroad.com/Mortgage/online-mortgage-broker.html
  13.  www.upfrontmortgagebrokers.org/about-us/
More Personal Finance Topics
Check Out All Costs for Personal Finance How Much Does Closing a Home Cost? How Much Does a Traffic Ticket Attorney Cost? How Much Do Funeral Flowers Cost?

Search Thousands of Topics on CostHelper.com

 
Today's Featured Cost Articles

About CostHelper
CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.

CostHelper Community
Locksmith
Paid: 95.00
I left my keys inside... [more]
-Pepi44
Locksmith Cost
Commercial and residential power washing and window cleaning
Paid: 350.00
This company is truly amazing, I've never felt so satisfied after seeing the transformation of my home. I had green grime and algae growing rampid in the front my home. Within a few hours my home along with my deck was spotless... [more]
-Emanuel 1
Window Cleaning Cost
ER visit.
Paid: 9040.00
Thought I was having a heart attack, went to ER... [more]
-Omie
EKG Cost
Tune up
Paid: 384.00
Feel ripped off.Nearly $400 for a tune up. All that was done was a spark plug replacement and fuel induction service... [more]
-Sam Wise
Tune-up Cost
dented our friendhip
Paid: 300.00
I was asked to be MOH and other bridesmaid was out of town. She agreed to be financial co-host. Offered bride shower for 12-15 people. She said she would invite 40. My small house could barely accommodate... [more]
-70s gal
Bridal Shower Cost
Pet sat 2 dogs small poodle and medium Maltese
Paid: 140.00
Friday night to Monday AM, fed both dogs a total of 6 times, administered allergy eye drops to 1 of dogs, total of 6 times and spent the night with them 2 nights... [more]
-Pet Content While You're Away
Pet Sitting Cost