You’ll recognize many of the costs of
refinancing.
They are the same ones you paid when you got your original
mortgage.
You may pay less by going to the same lender who provided your original mortgage, but there’s no guarantee. But it pays to shop around for the best deal.
Fees you’ll owe upfront include:
A loan application
fee or a loan origination fee, which covers the cost
of processing your application for refinancing, usually
expressed as a percentage of your loan
A credit check fee,
which the lender uses to obtain and evaluate your
credit report
A
title
search
fee, which pays for the lender’s search of the
public record of ownership of your property
A title insurance
policy to protect the lender from any loss due to
an inconsistency in the title
Attorney fees for
your attorney and your lender’s attorney
These upfront fees are fixed no matter what
the size of the loan is. So, the more money you borrow, the lower
the percentage you’ll be paying in fees — though the
more you’ll have to repay.
If you refinance a large mortgage, you may
be able to make up the cost of borrowing quickly because of the
savings you realize on your reduced monthly interest payments.
