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 though, that would cost you $4000. While these points are tax deductible over time, it is still a hefty charge to pay upfront. Make sure you plan to stay in your home long enough to realize the interest rate savings.
Application Fee
An application fee is sometimes charged by a lender in order to cover the cost of their time in preparing your application and the cost of pulling your credit report. Some lenders may waive this fee, but if not, you could pay anywhere from $75 to $300 for this service. Be sure you check beforehand with the lender how much he will charge.
Appraisal Fee
Because you are taking out a new loan with your property as collateral, the lender needs to know exactly how much that collateral is worth. They must hire a third party to examine the property and determine its current market value. You can expect to pay between $150 and $400 for this service.
Title Search and insurance
The lender will also need to be sure that you are in fact the legal owner of the property and whether or not there are any liens or other judgments on the home. This requires a full search of the homes title. You will also be charged for title insurance which protects you against problems with the title. This may cost between $450 and $600.
All in all, most refinance loan fees total between 3 and 6 percent of the loan balance. By shopping around and comparing rates and fees from different lenders, you can be sure you are getting the best deal on your refinance mortgage loan.
Utah County Homes AMP Mortgage Xpress Orem Real Estate Provo Orem Homes Provo Real Estate Utah Realtor Utah Homes Utah Homes For Sale Provo Real Estate WS Orem Real Estate WS Utah Homes 4 Sale Alpine Real Estate American Fork Real Estate Cedar Hills Real Estate Highland Real Estate Lehi Real Estate Pleasant Grove Real Estate Utah County Home Values Utah County Realtor Utah County Realtors Provo Realtor Provo Utah Real Estate Eagle Mountain Real Estate Mapleton Real Estate Payson Real Estate Saratoga Springs Real Estate Spanish Fork Real Estate Springville Real Estate Utah Best Rate Utah Home Loans Franklin D. Hulme, DDS Utah County Title Companies Utah County Mortgage Companies Utah County Home Warranty Companies Utah County Home Inspection Companies Utah County Appraisal Companies Orem Real Estate, Provo Real Estate, American Fork Real Estate, Lehi Real Estate, Lindon Real Estate, Pleasant Grove Real Estate, Highland Real Estate, Alpine Real Estate, Eagle Mountain Real Estate, Saratoga Springs Real Estate Springville Real Estate, Mapleton Real Estate, Spanish Fork Real Estate, Cedar Hills Real Estate , Utah County Real Estate, Utah Homes For Sale Alpine Utah Homes, Utah County Real Estate, Utah County Real Estate MLS, Utah County Homes MLS, Prudential Utah Real Estate, Loans MLS Search, Apply online, Utah County Real Estate Neighborhoods, Utah County Real Estate, Utah County Homes MLS,, Utah County Real Estate For Sale By Owner, Utah County Homes 4 Sale, Utah County Real Estate 4 Sale, Utah County Short Sales, Utah County Bank Owned, Utah County Short Sales UCRE, Utah County Bank Owned UCRE, AMP Xpress, Davis County Real Estate, Chandler Real Estate, Gilbert Real Estate, Mesa Real Estate, Tempe Real Estate, Queen Creek Real Estate, Gold Canyon Dentist, Mark Wilkinson, Tooele County Real Estate, Summit County Real Estate, Wasatch County Real Estate, Washington County Real Estate, Salt Lake County Real Estate, Weber County Real Estate, Springville Real Estate, Lehi Real Estate, American Fork Real Estate, Alpine Real Estate, Pleasant Grove Real Estate, Heber City Real Estate, Midway Real Estate, St. George Real Estate, Cedar City Real Estate, Park City Real Estate, Deer Valley Real Estate, Cache Valley Real Estate, Logan Real Estate, Brigham City Real Estate, Vernal Real Estate
Comments(0)