Refinancing Fees

How much did you pay at closing to refinance?

I’m questioning my refinance as now I’m locked in at 2.8% , but when I’m comparing the cost of what I currently owe compared to what the new loan amount will be to refinance .. it’s 18k more! Totally having 2nd thoughts now.

Re: Refinancing Fees

Posted by xosweetiexo

How much did you pay at closing to refinance?

I’m questioning my refinance as now I’m locked in at 2.8% , but when I’m comparing the cost of what I currently owe compared to what the new loan amount will be to refinance .. it’s 18k more! Totally having 2nd thoughts now.

Message edited 9/28/2020 10:39:06 PM.

Re: Refinancing Fees

Posted by marycpa

Posted by xosweetiexo

How much did you pay at closing to refinance?

I’m questioning my refinance as now I’m locked in at 2.8% , but when I’m comparing the cost of what I currently owe compared to what the new loan amount will be to refinance .. it’s 18k more! Totally having 2nd thoughts now.

A chunk of the $18k is probably to escrow taxes. You will get your escrow back from your old mortgage so that should wash.

I think it usually only worth refinancing if you are saving 2pts or more on the rate.

I paid about $8k in fees to refinance a $250k mortgage. An additional $4k was for taxes but I got the money back from my old escrow.
There are certain items you can shop for yourself on the good faith estimate. I didn’t do that though because I didn’t know how. I just went with the bank people.

Re: Refinancing Fees

I don't know how much mine was to refinance. However, i refinanced with the same bank, so certain recording fees and title fees were not needed as it stayed with the same bank.

If I were you I'd bring the question to your mortgage lender to understand what that $18K is and if you're getting any of it back, or if it is true fees.

Although there are lots of rules of thumb, take a look at the actual numbers. you can run amortization tables online easily or ask your mortgage guy.

$18K if it is a true expense is a lot of money. Not sure what your mortgage is, but 1% savings of a $400K loan is $4K per year approx. so if that is the case you're not going to break even on your refi until year 5. 2% would be $8K per year and you'd be in year 4 before any savings.

are you going to move in 5 years?

Refinancing Fees

DANG that is a low rate! I just refinanced in March/April to 3.25% and at the time that was rock bottom. This is rock bottom!

Refinancing Fees

I am in the process and the fees are 16K, which I think is exorbitant. I locked in at 3% but my credit score is 761 and I was initially told 2.8 so who knows what happened and Im not happy about that (unfortunately I didnt ask around). I cant wait to be done. Im starting to feel this is a big scam and a rip off.... this whole mortgage thing. Im only refi because I know I will be in the house for more than 5 years. Oh and I was not told anything about escrow.

Re: Refinancing Fees

Thank you everyone!! I totally feel like this whole refinancing business is a big scam. I was shocked as to what we have to pay at closing.. I didn’t think it would be that much.