how much should refinancing a convectional mortage cost?
Written By: refinancing on January 5, 2010
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How much profit should the lender typically make to close the mortage agreement?
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Tags: convectional, Cost, mortage, much, No Cost Refinancing, refinancing, refinancing a conventional mortgage, shouldTags: convectional, Cost, mortage, much, refinancing, refinancing a conventional mortgage, should
The one time I refinanced, it didn’t cost anything. In fact, I got money back. (Refund on PMI).
The cost of refinancing is equal to the closing costs
There is NO SUCH THING as a no-cost refinance.
Banks don’t work for free and neither do loan officers.
There are “no out of pocket” refinances where they roll all costs back into the loan.
People that reckon they got a “no cost loan” just didn’t read the fine print.
You really should not pay more than a 1% origination fee. There are usually processing fees, a credit report fee and possibly an underwriting fee. Those really are the only fees that should go to the originator of your loan. That is not to say that those are all of your closing costs, you may have prepaid fees such as interest and taxes as well as title and escrow fees.
Beware of the “no closing cost” refi’s, they generally have a higher interest rate and you end up paying for their commission over 30 years.
Depending on the state you are in the costs will vary. With title, escrow, processing, etc. without points (some call this origination fee) the hard costs should be around $2800 to $3300. The points are determined by the rate you agree to. On Friday, my client was looking at 5.75% on a 30 year loan, conforming (under $417,000) for 1 point. A point is a percentage of the loan. The loan is at $280,000 the 1 % would be $2800.
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