Refinance Costs
When you refinance your mortgage, you usually pay off your original mortgage and sign a
new loan. With a new loan, you again pay most of the same costs you paid to get your
original mortgage. These can include settlement costs, discount points, and other fees.
You also may be charged a penalty for paying off your original loan early, although some
states prohibit this. The total expense for refinancing a mortgage depends on the interest
rate, number of points, and other costs required to obtain a loan. To obtain the lowest
rate offered, most mortgage companies will charge several points, and the total cost can
run between three and six percent of the total amount you borrow. So, for example, on a
$100,000
mortgage, the company might charge you between $3,000 and $6,000. However, some companies
may offer zero points at a higher interest rate, which may significantly reduce your
initial costs, although your payments may be somewhat
higher. |
REFINANCE
Refinance Considerations
Refinance Once, Then Do It Again
Build Home Equity Faster
Get Your Hands on Some Cash
Trade your ARM for Fixed Rates
Mortgage Refinance Costs
Analyze Your Savings
Paying Points For A Lower Rate
Your Personal Income Taxes
Consider Other Mortgage Programs
Deciding To Refinance
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