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Resources,
Articles, and F.A.Q.'s
How much will it cost to refinance your mortgage?
When you refinance
your mortgage, you usually pay off your original mortgage and sign
a new loan. With a new loan, you again pay most of the same costs
you paid to get your original mortgage. These can include settlement
costs, discount points, and other fees. You also may be charged
a penalty for paying off your original loan early, although some
states prohibit this.
The total expense
for refinancing a mortgage depends on the interest rate, number
of points, and other costs required to obtain a loan. To obtain
the lowest rate offered by the lender, most lenders will charge
several points, and the total cost can run between three and six
percent of the total amount you borrow. So, for example, on a $100,000
mortgage, the lender might
charge you between $3,000 and $6,000. However, some lenders may
offer zero points at a higher interest rate, which may significantly
reduce your initial costs, although your payments may be somewhat
higher.
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