refinancing closing costs....

I'm just curious, but shouldn't it be LESS than the closing costs when you bought your home?? Maybe I just need to do more homework on this, but our broker just faxed DH a list of the fees for closing and the cost is MORE than we spent on the closing when we bought the house!! I don't understand how that is possible when we are refinancing for a significantly lower amount.... I don't really want to go into the details, but it really just seems like an exorbitant amount of money for refinancing. DH wants to go over the paperwork with his dad and our lawyer now, and I don't know how comfortable I am with using this broker now, am I wrong to consider walking away from a great rate bc of this? I'm just looking for some LIF feedback - if you have any advice I'd love to hear it bc I'm a little confused right now and hate feeling stupid. Thanks!

Re: refinancing closing costs....

This could be the case. Remember, when you re-finance, you are essentially buying your home again from yourself. It's considered a new mortgage

Re: refinancing closing costs....

I understand that it's esentially a new mortgage, but the thing that confuses me is that the amount we are refinancing for is much lower now lower since we've been paying it for three years now. We are refinancing for the house for the remaining amount left on our mortgage, so I just don't see how these closing costs are so much higher than they were when we first got the mortgage for the original price of the house....

When I was talking to DH earlier, my suggestion was that the broker might have jacked up their fees a bit once they saw the house and did the appraisal - is that possible?

Re: refinancing closing costs....

Would you be refinancing with the same lender who holds your current mortgage? If so, costs should not be as much as a purchase. But if it is a different lender this time around then it's considered a purchase and costs will be high. If you have a credit union, check out their rates, they are usually lower.

Re: refinancing closing costs....

It is a different lender - I didn't even think of that... Boy, just when you think you've done all your homework on something! thanks!

Re: refinancing closing costs....

Posted by bluegrl24NY

It is a different lender - I didn't even think of that... Boy, just when you think you've done all your homework on something! thanks!

Re: refinancing closing costs....

thanks Kathy!!! I just feel better hearing that this isn't abnormal, so we wil most likely stay with them since their rate is saving us almost 300 a month!

ETA - I hit send before finishing reply!

Message edited 6/16/2005 5:15:46 PM.

Re: refinancing closing costs....

Sometimes it pays to switch lenders. Good luck with the refi!!