If you’re considering taking out a new home loan you might be wondering how you get the lowest closing costs for refinancing a mortgage loan. The reason closing costs are so important is that you’ll have to recoup these out-of-pocket expenses before benefiting from today’s lowest refinance rates. Here are several tips before you refi to help you avoid overpaying these closing costs for refinancing a mortgage.
Closing Costs for Refinancing Your Mortgage
One of the most common mortgage mistakes is being so wrapped up in finding the best refinance companies that people neglect comparing mortgage refinance closing costs. Did you know that all of the mortgage refinance closing costs that you pay are negotiable? Spend a little time haggling and you could easily save hundreds if not a thousand dollars; even with the top mortgage lenders.
The test of you good of a deal you’re getting on your home loan is the mortgage refinance closing costs that you pay. Before you’ll benefit from lowering your monthly payment amount you have to recoup your out-of-pocket expenses. The more you pay, the longer it’s going to take to break even. The easiest way to avoid overpaying is to negotiate a one percent origination fee for the person arranging your mortgage refi and make sure you’re not paying junk fees.
Mortgage Refinancing Junk Fees
One of the most notorious junk fees you’re likely to encounter in your closing costs for refinancing a mortgage is the interest rate lock fee. This is a junk fee charged by the company or broker arranging your mortgage refi, there are no lenders that charge a fee for locking so the rate lock fee is pure garbage. Other unnecessary fees include application fees, processing fees, and courier fees. Don’t be afraid to ask for an explanation for any fees listed on your Good Faith Estimate or to haggle over paying the fee as a condition of your business.
You can learn more about getting today’s best mortgage refinance rates without paying junk fees or unnecessary markup by checking out my free Underground Mortgage Videos.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
