EchoBay Expert: I've been searching for the best mortgage refinance loan but I don't know what costs I need to be paying to get the loan. Some lenders charge points, other don't. Some have large closing costs and appraisal fees others have smaller fees. What fees should I expect to be charged to refinance my mortgage? Thanks.
Loyal Reader: As you have found, the fees you pay for a mortgage refinance loan vary greatly according to lender. In general, you should expect to pay an application fee, an appraisal fee, title search and title insurance fees, loan origination fees and points.
These are all very typical fees for mortgage refinance loans. But even these fees can vary greatly, especially the origination fees and points. With some lenders, your interest rate depends on the amount of the origination fee and points. If you are willing to pay higher fees, you can enjoy a lower interest rate.
It should be noted though that not all lenders charge these fees. In fact, the majority of online lenders charge less in fees than what you can get from your local bank. This is mainly because the competition is more intense online and there is less overhead involved.
The cost savings are passed on to you in the form of better interest rates and lower fees. All lenders must disclose their fees in a good faith estimate once you have applied for a loan. You can also ask for a disclosure of fees before applying for your loan.
Be sure to compare mortgage refinance loans based on all of the terms of the loan including interest rate and any penalties as well as fees.