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/u/Vanderspanish
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For reference, I am still in the consideration phase of putting an offer on a home. I can comfortably afford my home at rates I am seeing today, but I want to better understand the financial implications of my future option set. Thanks!
Online, I commonly see that Refinancing Costs are 2-5% the amount of the Loan. My loan value is ~$700K and I am reviewing closing fees from mortgage brokers around $12K, of which around $7K of that amount being in Pre-paid escrow.
My current thought is that I might expect my refinance costs to go up modestly vs. current closing costs (ex: $12K -> $16K as demand for refi's increase with hypothetically lower interest rates). I'd also guess the reason my refi costs are at the lower end of the range I see online is because my absolute loan amount is somewhat higher than average and fixed costs associated with the loan don't scale linearly.
My specific questions
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Refinancing Costs (2-5%?)
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Online, I commonly see that Refinancing Costs are 2-5% the amount of the Loan. My loan value is ~$700K and I am reviewing closing fees from mortgage brokers around $12K, of which around $7K of that amount being in Pre-paid escrow.
My current thought is that I might expect my refinance costs to go up modestly vs. current closing costs (ex: $12K -> $16K as demand for refi's increase with hypothetically lower interest rates). I'd also guess the reason my refi costs are at the lower end of the range I see online is because my absolute loan amount is somewhat higher than average and fixed costs associated with the loan don't scale linearly.
My specific questions
- Am I thinking about my future refi costs correctly in the above paragraph? Anything glaring I am not considering?
- In the case of a refinance, how should I think about the $7K in the pre-paid escrow (taxes + insurance premiums). Do I have to pay that again?
[link] [comments]
Refinancing Costs (2-5%?)
Continue reading...