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Old 07-24-2008, 09:52 AM
 
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If a mortgage lender pays for new home closing costs but then i find a much better rate with another lender,what are the risks of refinancing with a new lender?Do i have to repay the closing costs?
Also what does it cost these days to refinance a home?
Thanks

Last edited by jerzstyle00; 07-24-2008 at 10:12 AM..
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Old 07-24-2008, 11:32 AM
 
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Most likely there will be closing costs associated with the refinance, so that is your cost to refinance. You can divide that cost by the monthly savings with the new rate to see how long before you recoup your costs. Also you'll want to see if there is a repayment penalty on your current loan or any time restriction on repayment. Those penalties can be pretty steep if they apply. As far as the closing costs the lender paid, you will not have to pay those back and most likely were rolled into the interest rate they gave.
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Old 07-24-2008, 12:15 PM
 
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No risks, but costs average in the low to mid thousands based on multiple factors.
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Old 07-24-2008, 02:33 PM
 
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Would you know how much it would cost to refinance in texas? I hear it depends on which state your in.
My current mortgage will be 130,000 for a 2000sqft home.
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Old 07-24-2008, 02:52 PM
 
Location: Charlotte, North Carolina
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you always have to pay to refinance your mortgage

You will pay in closing costs or a higher rate.
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Old 07-24-2008, 03:16 PM
 
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Quote:
Originally Posted by jerzstyle00 View Post
Would you know how much it would cost to refinance in texas? I hear it depends on which state your in.
My current mortgage will be 130,000 for a 2000sqft home.
Someone correct me if I'm wrong, but in a refinance, most of the closing costs are the lender costs whereas in an original purchase there is also many third party costs with title insurance being a big one.

It will vary from lender to lender no matter what state you're in. You will have to contact individual lenders and get rates and closing cost information to compare amongst.
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Old 07-24-2008, 03:48 PM
 
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Quote:
Originally Posted by vukinjo View Post
Someone correct me if I'm wrong, but in a refinance, most of the closing costs are the lender costs whereas in an original purchase there is also many third party costs with title insurance being a big one.

It will vary from lender to lender no matter what state you're in. You will have to contact individual lenders and get rates and closing cost information to compare amongst.
Nope, bascially all the same costs again except you will get a re-issue rate on the title insurance (discount).
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Old 07-24-2008, 03:50 PM
 
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Quote:
Originally Posted by jerzstyle00 View Post
Would you know how much it would cost to refinance in texas? I hear it depends on which state your in.
My current mortgage will be 130,000 for a 2000sqft home.
There is no set amount of closing costs. You can always accept a higher interest rate and get reduced (even all the way to $0) costs and vice versa (lower rate and higher costs).

Contact a mortgage lender and they will give you some rate/cost options for no cost or obligation. That will be the only true way to get a handle on it. There are far too many variables to just throw a number up here on the forum.
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