| Refinancing your current mortgage is a wise | | | | Extra Fees For Refinancing |
| financial decision if you can recoup the costs of a | | | | Besides regular mortgage fees, you may get |
| refi. An average refinancing deal, you can expect | | | | stung on a prepayment penalty or private |
| to pay between two and six percent of the loan | | | | mortgage insurance. Prepayment fees are |
| amount if fees and points. On average if you can | | | | prohibited on federally back loans, such as FHA or |
| lower your interest rate by two points, then you | | | | VA mortgages. Some states also limit |
| will usually come out ahead in the end. | | | | prepayment fees. Check your current mortgage |
| Normal Mortgage Costs | | | | before deciding to refinance. |
| Refinancing your home is just like taking out your | | | | You may also be hit by private mortgage |
| mortgage the first time. All the loan costs you | | | | insurance (PMI) if you decide to take out your |
| paid for your original mortgage, you will have to | | | | equity. This can add up to several hundred dollars |
| pay again. Usually these had up to $2000 in fees | | | | a year. But if you have a government backed |
| plus at least one point. Fees will be included for | | | | loan, you don't have to worry about this issue. |
| application, appraisal, survey, attorney review, and | | | | How To Decide |
| title search. | | | | When you are trying to decide on whether to |
| Besides the loan origination fee of 1%, you can | | | | refinance or not, take a look at your loan and |
| also expect to pay a couple of points for lower | | | | home goals. If you plan to stay in the home for |
| rates. Points are flexible though. You can choose | | | | several years, then you have the time to recoup |
| to pay no points for a higher rate, or a couple of | | | | costs. |
| points for lower rates. Base your decision on how | | | | You can also request quotes from mortgage |
| cost effective points would be. Using an online | | | | lenders to see what kind of deal you can get. |
| mortgage calculator can help you figure the costs | | | | With no commitment on your part, you can take |
| and savings of each option. | | | | a look at rates and points that are being offered. |