Refinancing your mortgage can improve your financial situation by reducing your monthly payment amount. You may also find a mortgage with more favorable terms than the one you initially financed your home with. If your credit has improved since you purchased your home you should seriously consider refinancing your current mortgage.
When deciding if refinancing your mortgage makes sense you need to consider the fees you will be required to pay. If you come out ahead when comparing the fees to your potential savings, refinancing would be a smart choice.
Here are common fees you can expect to pay when refinancing your mortgage.
Mortgage Application Fee
Mortgage lenders require application fees for refinancing just like they did with your original mortgage. Application fees vary from one lender to the next; however you can expect to pay between $75 and $300 for the application fee.
Your Property Appraisal
If your appraisal is not current the lender may require you to update it. This could work in your favor is your home has appreciated since you purchased it. Appraisals cost in the neighborhood of $100 to $500.
The lender may require a new survey of the home. The survey is a map of the property showing physical features and dimensions. It could cost as much as $300 to $500 for a surveyor to come out to your home and perform the survey. An inspection could also be required which could add and additional $300 to the bill.
Loan Origination Fees
Lenders charge origination fees totaling .5% to 1% of the loan value. You may also be required to pay point to qualify for the loan. A point is 1% of the loan value paid in addition to the origination fees.
Lender fees add up quickly and can make refinancing your mortgage an expensive proposition. To avoid paying too much for the mortgage you need to do your homework and find the best deal for your loan.
Here’s a sample you need to know about what you need to know before refinancing your home. Register for these mortgage videos today while this is still a free offer.