Refinancing a Mortgage Cost

• 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.

• 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.

• 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.

• 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.

• 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.

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/

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?

Today's Featured Cost Articles

Three quarters of Americans will be affected by the polar vortex. Here's information on clearing snow. The price of a "Forever" stamp increases to 55 cents on January 27, 2019. What would a personal trainer cost to reach those New Years goals? It's the New Year. Looking for a gym membership to keep to that resolution? Who is planning your big holiday event? A catering company may be able to help.

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

Hot Water Heater Paid: 1805.00 Notified the company Saturday and they were onsite Monday morning with and evaluation. Within 2 hours they had the new water heater onsite and installing... [more] -Robert Flowers Replacing a Water Heater Cost Nitrous oxide Paid: 727.00 My oral surgeon wanted to charge me $727 for nitrous oxide I opted for the needle and he was extra rough on me I think he was mad because I wouldn't spend the money... [more] -Nathan e dodge Sedation Dentistry Cost Clearing Forest of lightly wooded brushy area. no tree cutting Paid: 1100.00 Hired to clear 2-lots 98.24 length by 62.5 width and 3rd lot 56.5 width by 110.99 length. He started clearing borderline path all around property to work his way to center of property. Debris was burned (none was hauled away)... [more] -Margie brown Land Clearing Cost Cost Paid: 300.00 WHY is it so expensive---my sibling is on Social Security... [more] - Medical Marijuana Cost Sunroom Patio Enclosures Paid: 56000.00 14x16 gable roof 3 season room 4 season was $75,000 includes new deck gable roof shingled with skylights... [more] -ROBERT PETERS Sunroom Cost 20% Rear, 35% Front, 70% Windshield + "Free" Sunroof Paid: 500.00 Got a few quotes around town. This place low balled me to get me in the door, but I already knew I'd want more premium grade tint. Office was friendly and explained my options well... [more] -Butchy45 Window Tinting Cost