While it’s true that today’s best refinance rates are near their lowest levels in fifty years; however, closing costs have risen for the second straight year. The test of how good of a deal you’re getting on your home loan doesn’t come from getting the lowest refinance rates, but paying the least amount at closing. Here’s an article on the TruthAboutMortgage.com about the recent spike in closing costs (as much as 9% in some areas):
Mortgage rates may be at or near record lows, but closing costs aren’t. Mortgage closing costs rose for a second straight year, according to a survey released today by Bankrate.
One of the most common mortgage mistakes is not negotiating with your broker and lender over fees. Almost all the fees you pay closing on your mortgage refi are negotiable, including the broker’s origination fee.
The reason paying less for your mortgage refinance is so important is that you’ll have to break even on these expenses before gaining any benefit from your new home loan. The less you pay the quicker you’ll recoup your closing costs from what you’re saving with the lower payment.
You can learn more about paying less for your mortgage refi by avoiding unnecessary fees and markup by checking out my free Underground Mortgage Refinance Videos.