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What did you pay in fees if you refinanced your home?

I have an offer from the company that holds my mortgage. I could save quite a bit of money every month because of a lower interest rate. But there's a $105 fee for submitting the application and $2800 in fees that will be rolled into the loan. The offer sounds good to me, but I'm not up on these things. Also, does it have any effect on credit or anything else if I extend the length of the mortgage to 25 or 30 more years, instead of leaving it at 22 years where it is now? For every year you extend the mortgage, the monthly payments are smaller.

 
Ballad

Asked by Ballad at 5:42 PM on May. 29, 2013 in Home & Garden

Level 45 (193,996 Credits)
This question is closed.
Answers (7)
  • We are currently in the process of doing a refi w/ the bank that holds our mortgage too. They should give you a break on those fees since you are a current & valued customer. Ask if they will take that down a bit for you. With the rates as low as they are, you should be able to get a 15 yr. fixed for the same price as a higher rated 30 yr loan. By doing what we're doing, we're gonna have the house paid off in 10-12 years. If you divide your payment by 12 & add that amt. onto your monthly payment toward the principle, it's like making an extra payment every year & knocking more time off the mortgage. You can IM me if you have any questions. :)
    mrsmom110

    Answer by mrsmom110 at 7:17 PM on May. 29, 2013

  • Also, if you do a recast, you don't need an appraisal. That's great if your house has lost value.
    JulieJacobKyle

    Answer by JulieJacobKyle at 7:27 PM on May. 29, 2013

  • When we refinanced it was around $1000, which they rolled into the mortgage. We didn't lengthen the time of the loan so I'm not sure about that.
    missanc

    Answer by missanc at 6:35 PM on May. 29, 2013

  • For every year you extend you mortgage you just pay that much more in interest. You need to be thinking about the total cost of the loan not the monthly payments. And don't let anybody tell you about the tax benefits. the tax ma only gives you a break at your taxable rate. If you are in the 25% tax bracket then for every dollar of interest. The tax man pay 25 cents and you pay the other 75 cents. If you are in the 46% of people who pay no income tax then you don't get the deduction at all. Pay the maximum amount you can afford to pay and pay it off as fast as you can. Interests compounds and the bank is making a profit off of you.
    LoveMyDog

    Answer by LoveMyDog at 7:02 PM on May. 29, 2013

  • The bank will also give you a lower rate on 15 year than they will on a 30 year.
    LoveMyDog

    Answer by LoveMyDog at 7:03 PM on May. 29, 2013

  • I can't remember exactly, but I think it was around $2500, give or take. Ours was on a 15 year loan, to drop the payments. If you are just trying to reduce the interest rate, you can recast your loan, which is usually about $250, and the paperwork is very easy. Most banks won't tell you it's an option, but it's a good one. You keep the 22 years you have left, and you just change your interest rate. Considering how easy it is and how inexpensive the filing fees are, it could save you a lot. Also, you can recast a loan any time you want, as many times as you want.
    JulieJacobKyle

    Answer by JulieJacobKyle at 7:25 PM on May. 29, 2013

  • Oh, I forgot to ask you if you were setting this up thru the HARP program? Less paperwork & hoops to jump thru.
    mrsmom110

    Answer by mrsmom110 at 6:29 AM on May. 30, 2013

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