On a refi, what fees are required? (insurance, loan, interest rate)

[HarborEastGuy]

On a Refi loan:

Could someone help me out by listing the "necessary" types of fee's
and a reasonable guess of what each fee should cost me?

Thanks so much,
Tom

[chet everett]

A refi will need an appraisal, generally less than $500. You may have some document /recording fees, typically a few hundred dollars. The lender has people to pay for doing the work of originating the loan, how they work that into the fee varies.

New loans have a lot more costs (transfer tax 'stamps' and other things related to the government and closing company), in IL about $2500 is not atypical, refi about half that.

[CaliforniaSoN]

Usually you look at a Good Faith Estimate and your cost will be categorized. The fees you are being charged by a lender or particular loan program are the first fees you see.

For Example: Origination (1%-1.25%), Processing (350-995), Underwriting (350-995).

You will also Pay fees for services rendered 2nd part of fees.[

For Example: Title, Notary (150-250), Recording Fees.

Last you will be paying Prepaid Cost / Reserves these will differentiate depending on time of year, purchase price, etc.

For Example: First payments, Home owner insurance, Mortgage insurance premium, Taxes.

I hope this helps you and it is always important to look at what your retirement might offer. I know that CalPERS members get loans that are lower in cost and also give down payment help.

[Chilkoot]

We refinanced our condo in May and were surprised at an extra fee called Fannie Mae Loan Level Price Adjustment (LLPA). We were able to avoid it but some may not. There is a .75% fee on loan to value over 75%. They have these for certain credit scores, LTVs, property types, occupancy types, etc...

[Flamingo13]

We're in the process of getting a refi. also and the total fees (I don't have a breakdown) - through a credit union and the feels total just over $1,000

[VictorBurek]

Keep in mind that getting an interest rate is like buying anything else, the more you pay the better the product. The more you pay in closing costs the lower the interest rate.

Flamingo13 when you say $1000 in fees, does that include the title fees, title insurance, appraisal, credit report, etc. or is that just the credit union fees?

[Flamingo13]

VictorBurek - that's the total fees for everything (at least that is my understanding).

[Moonwalkr]

Originally Posted by Flamingo13

We're in the process of getting a refi. also and the total fees (I don't have a breakdown) - through a credit union and the feels total just over $1,000

That's pretty good, my fees/insurance for title work alone is $1k. Add on top appraisal, application/processing fee, underwriting, etc. I think I ended about $2k.

[Flamingo13]

Maybe because it's through a Credit Union for us? The total is $1,085.00 for everything, had the appraisal done and we go to closing week after next. Good luck to you Moonwalkr.

[SummerSurana]

Tom

It highly depends on what kind of loan you have been offered - FHA or conventional, the risk factors, loan amount and the interest rate offered. below is the breakup section wise and whom the fees go to-

Section 800 - Broker/lender fees

origination fees - 0% - 1%
Points - if you are buying down the interest rate
Appraisal fee - standard 350 for conventional and 400 to 450 for FHA
Application fee - 350 to 500 depends if there is an origination fee or not
Procesing fee - 400 to 550 (depends from lender to lender)
Underwriting/lender Admin fee - varies from lender to lender

Section 1000 - prepaid items

HOI premium reserves - depends on whn the premium is due.
Property taxes reserves - depends on whn the taxes are due next.
Per diem interest - depends on the closing date. count the number of days left from closing date till end of month.
These reserves will be included only if you are taking an escrow account. this will increase your loan amount considerably depending on the amount of taxes and insurance.

Section 1100 - Title Fees

Closing/escrow fee - 200 to 350
recording fees - 100 to 150
title insurance - depends on loan amount and your last transaction of purchase/refi on same property.

If you are getting a slightly lower rate than what is available in the market thn the closing cost should be reasonably less. if the interest rate is much below than what is available that means the lender or broker is getting a lower rate for you and charging higher clsing cost. it is upto you to choose what you want, lower interest rate or lower closing cost. Lower rate will be for a life time of loan term and you can recoup the closing cost within few yrs.
let me know if you need any help or have any questions.

All the best.