The closing costs is one the main issues when refinancing
your mortgage.
Many loaners tend to overlook these costs
and pay attention
just to the offered interest rate. This is a common mistake.
The interest rate is very importnat, but the closing costs
should be a big consideration – especially when you decide
not to pay them yourself, but to either
[a] include them in your new principal or [b] to let the new LENDER pay for them in return to paying higher interest rate.
The following information is built upon closing costs or settlement costs data collected by various surveys, including the FED intself:
| 100,000$ with 10% down-payment | 200,000$ with 10% down-payment | 200,000$ with 20% down-payment | |
| Application Fee | 65$-650$ | 65$-650$ | 65$-650$ |
| origination fee (around 1%) | 1,000$ | 2,000$ | 2,000$ |
| points | avg. 2,000$ | avg. 4,000$ | avg. 4,000$ |
| appraisal fee | 150$-400$ | 150$-400$ | 150$-400$ |
| Lender’s inspection/attorney | 150$-400$ | 150$-400$ | 150$-400$ |
| insurance fees | 450$-600$ | 450$-600$ | 450$-600$ |
| PMI | 750$-1,500$ | 900$-1,750$ | 900$-1,750$ |
| inspections | 175$-300$ | 175$-300$ | 175$-300$ |
| Survey | 125$-450$ | 125$-600$ | 125$-600$ |
| Recording fees for deed, mortgage, transfer, city/county taxes and state taxes** |
75$-6,000$ | 150$-6,000$ | 150$-6,000$ |
| Partial month interest | 50$-1,200$ | 100$-2,400$ | 100$-2,400$ |
| DOWN PAYMENT | 10,000$ | 20,000$ | 40,000$ |
| totals | 15,065$ – 24,500 $ | 28,265$ – 39,100$ | 48,265$ – 59,100$ |
* there may also be broker fees and/or assumprion fees.
** taxes are different from state to state, the median is around 550$
*** Hazard insurance, title insurance, and other fees (such as pest inspections) where not included.
Escrow deposits (set aside for flood insurance and homeowner insurances) are not required in most states, therefore where not ncluded in the table above. you may want to consider these funds nonetheless.
^ Different closing fees that may be applicable in some lenders , may also been excluded.
# This data is partial and does not reflect the acctual costs in your specific mortgage and should be treated as rough evaluation only, that can flunctuate extremely!
Just one comment: “Points” is actually a fee the New Lender takes for approving the new mortgage. Every 1 point = usually 1% of the mortgage taken. This is a major closing cost, and sometimes include within other lender’s fees.
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