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Refinance Closing Costs

Updated on August 10, 2010

All About Refinancing and Closing Costs

One of the many important factors that a borrower should consider when applying for credit remortgages are refinance closing cost and other miscellaneous fees. A borrower may inquire from its current mortgage carrier about refinancing and ask if the current policy can be carried over as well as the same interest rate. Homeowners can save up to 70 percent choosing this strategy, compared to what it would cost for a new policy.

The costs to remortgage your home may vary extensively from every lender as well as from what area you are from. If you are looking for the fastest way to find out about refinancing and estimates for closing costs, the World Wide Web is where you need to be. Having Internet today speeds up almost everything that you need to accomplish and that includes applying for quick remortgage loans online. With the help of the Internet, a borrower can estimate a ballpark figure of how much the closing cost would be.

Fees and Other Related Charges

There are several charges that a borrower will be required to shell out money for when applying for a remortgage.  The standard refinance closing costs and fees are indicated below;
  • Application Fee – imposed by lending firms which covers the preliminary costs to process the request for a remortgage which also includes background check for credit scores.
  • Appraisal Fee – pays for the appraisal of a property which assesses its value from an acceptable and justifiable point of view.
  • Title Search and Title Insurance – covers the costs to investigate public records of the remortgage property which confirms its ownership. The fee also includes the issuance costs of the policy which is done by a title insurance company. This provides an insurance of a specific amount to the policy holder that covers any loss that may be caused by incongruity or any discrepancy on the title of the property in question.
  • Lender’s Attorney’s Review Fees – this charge covers the fees that will be paid for the firm or lawyer that will conduct the closing for the lending company.

Other fees include;

  • Survey Costs
  • Loan Origination Fees and Points
  • Homeowner's Hazard Insurance
    Home Inspection Fees
  • Prepayment Penalty
  • Mortgage Insurance
  • Points
  • Miscellaneous Fees

Saving Money on Refinancing Costs

Summing it all up, a homeowner should be prepared to pay up to 3 to 6 percent in average will be taken out of the principal amount of the loan. This will be the refinance closing costs which include prepayment penalties as well as fees that will pay for the existence of any second mortgages.

To save some money for these costs, one way is to check your current lending firm and see if they can offer you a refinancing scheme and waive some of the fees involved. You can request to relinquish these fees if the work that needs to be done to close the refinancing process is still recent. Fees that can be waived include title search, property inspections and other related surveys. The best way to find out about remortgage loans and refinance closing costs is to ask the right questions. Being aware of all the possibilities and available options that you can make use of to refinance your home will help you achieve your goal.


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