How much will it cost me to refinance?

Although many lenders charge an application fee for $250 - $550, we do not.  Closing costs consist of underwriting fees  title fees, transfer taxes, appraisal and credit report charges.  These will usually be between 1.5 - 3% of your loan amount, depending on the size of the loan.  The lower the loan amount, the higher the percentage will be. Some brokers charge an origination fee of 1% or more - we do not. One other item to consider is whether you want to elect to pay points (1 point = 1% of loan amount) to buy down your rate.  By paying points up front, the lender will offer you a lower interest rate.  Many borrowers elect to do this. 

Finally, pre-paid expenses are also charged at closing, although these are not considered closing costs.  These include property tax reserves and escrows, hazard insurance reserves and escrows, and interest on the new loan from the date the loan closes to the end of the month.  These costs can vary significantly depending on when your insurance is set to renew, when your property taxes are next due, and whether you close at the first of the month or the end of the month.  Just for an estimate, figure on 4 months of hazard insurance and property taxes, and 1 month interest on the new loan.

If you don’t have the funds to pay for associated loan costs, we can offer "no-cost" loans, but these will carry a slightly higher interest rate.