Mortgage Refinancing – Why Do You Have To Pay Fees
Mortgage Refinancing – Why Do You Have To Pay Fees
by Louie Latour
Mortgage refinancing means you’re taking out a brand new mortgage to pay off your old loan. Closing on any mortgage costs money; however, this doesn’t mean mortgage companies get to take advantage of you. Here are several tips to help you understand the fees you will be required to pay when mortgage refinancing and avoid overpaying for your new loan.
When refinancing your mortgage the new lender may require a new appraisal, title insurance, a new note and lien, and anything else you were required to have when you purchased your home. This doesn’t mean that every lender will require you to have a new appraisal for example. Part of comparison shopping for a new mortgage is to choose a loan offer with the most attractive closing costs and fees.
There are a number of “garbage” fees you will want to avoid paying when refinancing your mortgage. These are fees mortgage companies include just for the sake of having fees like application fees, lock fees, and broker courier fees. Don’t be afraid to question your loan representative as to the validity of any fee listed on your Good Faith Estimate and negotiate to have fees lowered or removed.
Be careful with “no-fee” mortgages offered by banks and lenders claiming that their loans have no upfront fees or closing costs. While these loans may seem attractive and allow you to refinance your mortgage without paying up-front, this convenience always comes with a price. You will pay a higher mortgage rate for the entire duration of your loan than if you had actually paid the closing costs. Run the numbers on how much this additional interest costs you over the life on your mortgage and you’ll see that these “no-fee” mortgages aren’t such a good deal after all. You can learn more about your mortgage options, including costly mistakes to avoid with a free mortgage tutorial.
To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: “Mortgage Refinancing – What You Need to Know,” which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.
Claim your free mortgage refinancing tutorial today at: http://www.refiadvisor.com
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[tags]Mortgage Refinancing[/tags]
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