http://www.amerifirst.com/refinance-your-mortgage As with most purchase loan transactions there are typically costs involved with refinancing your mortgage. The exact amount will depend on factors such as interest rate or APR, value of the home, your current mortgage balance, and other items. There may be some no-cost or low-cost refinance loan options available to you in which some or all of the fees and closing costs are waived. However, preparing ahead of time for the costs will ensure that you can handle the fees that are associated with refinancing your loan. Let’s go over 9 fees that you could be charged.
Application Fee: This is the fee charged by the lender to process the loan application.
An Appraisal Fee determines the current value of your home.
Credit Report: You will likely have to pay for your credit report to be pulled.
Title Search and Title Insurance: You may be able to get your current title company to reissue a new policy and save some money in this area.
A Survey: Your lender may order a property survey to document the current status of the land your house is on.
Loan Origination Fee: This is charged by the lender to underwrite the loan, usually expressed in the form of points.
Discount Points: In general terms, one point is equal to one percent of the loan amount. You may want to pay discount points to secure a lower interest rate.
Prepayment Penalty: If your existing mortgage carries a prepayment penalty clause, you will have to pay a percentage of the outstanding loan amount for paying the loan off early.
And finally … Miscellaneous Fees. VA and FHA loans may have other fees associated with them. Private mortgage Insurance also known as PMI, document preparation fees, notary fees and tax service fees may also fall under this category.
Just as you encountered with your original loan, your lender will be required to provide you with a Truth-in-Lending Statement that outlines the fees associated with your new mortgage loan. AmeriFirst Home Mortgage is here to help you with your refinancing needs that will best suit your financial situation. For AmeriFirst Home Mortgage I’m Crystal Smith. Welcome Home.
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