Refinancing fees vary depending on the state you are in and what lender you use.
The application fee usually costs between $75 and $300. This fee covers the initial cost of checking your credit report and the processing of your loan request. Even if you are not approved for the loan you may still have to pay the application fee.
The loan origination fee usually costs anywhere from 0% to 1.5% of the loan principal. This is a fee charged by the lender to evaluate and prepare your loan.
Loan-discount points are a one time fee paid to reduce the interest rate of your loan. A point is one percent of the amount of your loan. This fee usually costs anywhere from 0% to 3% of the principal of the loan.
You will need to get an appraisal of your home to see how much it is worth in today’s market. This is to make sure the property is worth as much as the loan amount. Sometimes the appraisal fee is included in the application fee. If you have had a recent appraisal on your home make sure to check with your lender to see if you can use that appraisal or if you need to get a new one. Appraisal fees usually run anywhere from $300 to $700.
An inspection fee may be required to assure the lender your home is structurally sound. Certain states may require additional inspections. The inspection fee is usually between $175 and $350.
You will have to pay a closing cost on your new mortgage. The closing cost is used to pay attorneys or a company that takes care of the closing for the lender. The closing cost is generally anywhere from $500 to $1,000.
