What costs are involved?
There are no-cost and low-cost loans available, and some or all of the fees and closing costs may be waived with these types of loans. This is a brief rundown on fees that could be associated with a refinance loan:
- Application Fee - A fee charged by the lender to process the loan application.
- Appraisal Fee - This determines the current value of your home.
- Credit Report - The fee the lender charges to pull your credit report.
- Title Search and Title Insurance - You may be able to get your current title company to reissue a new policy and save money in this area.
- Survey - The lender may order a property survey to document the current status of the land your property is on.
- Loan Origination Fee - A fee the borrower pays the lender to underwrite the loan. Usually expressed in the form of points.
- Discount Points - One point is equal to one percent of the loan amount. You may want to pay discount points to secure a lower interest rate.
- Miscellaneous Fees - VA and FHA loans may have fees associated with them. Private mortgage Insurance (PMI), document preparation fees, notary fees and tax service fees may also fall under this category.
- Prepayment Penalty - If your existing loan carries a prepayment penalty clause, you will have to pay a percentage of the outstanding loan amount for paying the loan off early.
When you apply for a loan with Independence Home Mortgage, we will provide you with a customized Loan Estimate which outlines the fees associated with your new mortgage loan. Let us help you evaluate your personal situation and assist you in finding the loan program that works best to meet your long-term goals.