How much should my refi closing costs be? (PMI, interest rate, escrow)

[Arkham1010]

I'm doing a refi through the HARP program with Citibank, and the closing costs are frigging insane! Close to 7000 in closing costs, including things like interest payments, appraisal and origination.

The thing that kills me the most is the section on the good faith called Title services and lender's title insurance'. That alone is 3,376. what is that?

I'm already paying PMI also, so I'm confused why i would have to pay so much for that other stuff. Anyone have an idea?

• Origination - 665
• Credit of -500, so adjusted origination is 165
• Services (flood cert, appraisal, other stuff already paid for OOP) - 422
• Title services - 3376
• Goverment recording charges - 540
• Initial deposit for escrow - Out of pocket day of closing - 1550
• Daily interest charges - 1151
• Total - 7204.

Now, all this is getting lumped into the mortgage at closing other than the OOP stuff, so my balance is going from 306K to 311.


HOWEVER, my payments are dropping close to 500 bucks a month for this. That will help a lot.


Anyone have thoughts?

[FalconheadWest]

The title services is the title policy. On purchase and Refi, you always close with a title policy if there is a lender involved. There is an owner's policy and a lender's policy. For the amount of your loan, the price seems about right, but I don't know what state you're in. Yes, it costs money to refinance. Nothing is free. You can also choose to have a slightly higher interest rate to have some of those costs covered by the lender. You either pay the fees upfront, put it into your financed amount, or pay them with a higher interest rate. Either way, you pay.

[hairmetal4ever]

7 grand is low for 300k, actually.