Some of you have reached out to us and wondering about closing costs on a refinance. After all, factoring in the closing cost is a large part of the decision as to whether or not refinancing makes practical sense or not. An expensive closing cost for a refinancing option is likely to discourage homeowners. Thankful, this type of negotiating is possible!
To begin with, as we have suggested before, it is important to compare the different lenders and what they offer. Each lender has different options – which includes different interest rates, fees, and closing costs. So when you are shopping around or different rates, shop around for approximate closing costs too!
Did you know that some lenders have no closing costs? The closing cost will be mixed into the cost of the loan so you are actually paying for the closing cost with the rest of your payment. And believe it or not, but there are some lenders who will waive your closing cost completely. However, these lenders will likely charge you a higher interest rate so be sure to keep that in mind.
Another tip we have for you is to ask the lenders you speak with if there are any fees that can either be discounted or waived. In todays society, it never hurts to ask! And the answers you get might surprise you. There may also be some incentives or even rebates that are available to you. The mortgage market right now is very competitive so you may be surprised in the answer you get. There are also other fees that are negotiable. These fees include: loan application, loan origination, underwriting, homeowners insurance, and title insurance. Be open with potential lenders and ask questions!