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Does anyone know if there is a formula for how much a refinance should cost?

I've tried to google it and I see some things that make sense, but I have a guy, who I know is out of his mind, telling me some numbers. I'm just looking for a range from people with a mortgage background.

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Teachermom01

Asked by Teachermom01 at 1:12 PM on Mar. 29, 2009 in Politics & Current Events

Level 1 (0 Credits)
Answers (6)
  • There's no real formula, just a set of fees you need to pay that will vary based on your loan company - application, appraisal, legal and inspection, plus whatever combination of points and origination fees you have (1% each). Your loan company will break it down differently - some will have legal and inspection as 5 different categories, some will only have 2. At my job we used a general rule of $2k + 2% (origination + 1 point). but even that varied based on the property, and I know there were some fees we waved that most other companies include.
    NotPanicking

    Answer by NotPanicking at 1:21 PM on Mar. 29, 2009

  • I'm in the process now....waiting for the closing date. I'm refinancing to loans into one for a cheaper rate, saving me $350/month. My loan balance will be $130,000 and my closing costs are about $2700.
    EireLass

    Answer by EireLass at 1:25 PM on Mar. 29, 2009

  • I would suggest going to www.bankrate.com and using their calculators. It depends on the lending institution, your credit score, area, and other factors.
    grlygrlz2

    Answer by grlygrlz2 at 2:38 PM on Mar. 29, 2009

  • The bank you are trying to use should be able to give you those figures then shop around. There is usually an appraisal, processing fee, origination fee, could be a survey, points (sometimes), establishing escrow, etc.
    jesse123456

    Answer by jesse123456 at 3:34 PM on Mar. 29, 2009

  • Thanks everyone,,,,,,I know it all varies. We have really good credit, no blemishes, and this guy is telling me I will be adding on like $15000+ to my mortgage. I'm not stupid, just unknowing in this area. I'll call my mortgage holder tomorrow to see what they have to offer.
    Teachermom01

    Answer by Teachermom01 at 3:37 PM on Mar. 29, 2009

  • your CC's should never be more than 3% at that should include your pre paids.
    mamakirs

    Answer by mamakirs at 4:35 PM on Mar. 30, 2009

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