How Much Will My Refinance Cost? There are several options that can affect the closing costs of refinancing: 1. No closing costs- For this type of mortgage Shoreline Mortgage will pay for all closing costs excluding the prepaid items. In fact, Shoreline Mortgage will pay for all lender fees, credit report, appraisal, title insurance, attorney/settlement agent, title search, and recording fees. All a SHORELINE customer has to do is pay a $293.00 application fee that is reimbursed to the borrower at the closing of the loan. 2. Pay the Closing Costs out of pocket- In this scenario the borrower pays all of the closing costs at the time of settlement. These costs will always include: appraisal fee, credit report fee, miscellaneous lender charges, settlement agent/title company fees and government fees. The borrower may also choose to pay points as well 3. Roll in the closing costs/ Pay No cash out of pocket-
This is the most common choice for people refinancing their mortgage. The borrower increases their loan amount to cover for the full payoff of the existing mortgage(s) plus all closing costs on the new mortgage. This option is very attractive for most borrowers because the monthly payments increase only nominally when you add in the closing costs to the new mortgage.
For Example: take 2 scenearios... The first is to refinance only your current mortgage balance of $100,000 and pay $2,800 in closing costs. The second option is to refinance $102,800 and pay no closing costs out of
pocket. At 6.5% fixed interest rate over 30 years the monthly payments are as follows:
You can see why this option is so attractive. The difference between paying the closing costs out of pocket and adding them back into the new mortgage increase your monthly mortgage payment by only a few dollars per month. Which option you ultimately choose is a matter of individual preference and needs. For an in depth look at Closing Costs click here
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