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Refinancing Fees

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xosweetiexo
LIF Adolescent

Member since 8/09

854 total posts

Name:

Refinancing Fees

How much did you pay at closing to refinance?

I’m questioning my refinance as now I’m locked in at 2.8% , but when I’m comparing the cost of what I currently owe compared to what the new loan amount will be to refinance .. it’s 18k more! Totally having 2nd thoughts now. Chat Icon

Posted 9/28/20 10:15 PM
 
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marycpa
LIF Adolescent

Member since 7/07

635 total posts

Name:
Mary

Re: Refinancing Fees

Posted by xosweetiexo

How much did you pay at closing to refinance?

I’m questioning my refinance as now I’m locked in at 2.8% , but when I’m comparing the cost of what I currently owe compared to what the new loan amount will be to refinance .. it’s 18k more! Totally having 2nd thoughts now. Chat Icon



A chunk of the $18k is probably to escrow taxes. You will get your escrow back from your old mortgage so that should wash.

I think it usually only worth refinancing if you are saving 2pts or more on the rate.

I paid about $8k in fees to refinance a $250k mortgage. An additional $4k was for taxes but I got the money back from my old escrow.
There are certain items you can shop for yourself on the good faith estimate. I didn’t do that though because I didn’t know how. I just went with the bank people.

Message edited 9/28/2020 10:39:06 PM.

Posted 9/28/20 10:38 PM
 

FirstMate
My lil cowboy

Member since 10/10

7582 total posts

Name:

Re: Refinancing Fees

Posted by marycpa

Posted by xosweetiexo

How much did you pay at closing to refinance?

I’m questioning my refinance as now I’m locked in at 2.8% , but when I’m comparing the cost of what I currently owe compared to what the new loan amount will be to refinance .. it’s 18k more! Totally having 2nd thoughts now. Chat Icon



A chunk of the $18k is probably to escrow taxes. You will get your escrow back from your old mortgage so that should wash.

I think it usually only worth refinancing if you are saving 2pts or more on the rate.

I paid about $8k in fees to refinance a $250k mortgage. An additional $4k was for taxes but I got the money back from my old escrow.
There are certain items you can shop for yourself on the good faith estimate. I didn’t do that though because I didn’t know how. I just went with the bank people.



Yes, I just closed on my re-fi as well. My closing costs were also $18K but most were escrows for the bank. I think I paid roughly $12K in closing costs.

Posted 9/29/20 12:14 AM
 

CSK
LIF Adolescent

Member since 9/11

891 total posts

Name:

Re: Refinancing Fees

I don't know how much mine was to refinance. However, i refinanced with the same bank, so certain recording fees and title fees were not needed as it stayed with the same bank.

If I were you I'd bring the question to your mortgage lender to understand what that $18K is and if you're getting any of it back, or if it is true fees.

Although there are lots of rules of thumb, take a look at the actual numbers. you can run amortization tables online easily or ask your mortgage guy.

$18K if it is a true expense is a lot of money. Not sure what your mortgage is, but 1% savings of a $400K loan is $4K per year approx. so if that is the case you're not going to break even on your refi until year 5. 2% would be $8K per year and you'd be in year 4 before any savings.

are you going to move in 5 years?

Posted 9/29/20 10:35 AM
 

b2b777
LIF Adult

Member since 9/09

4474 total posts

Name:

Refinancing Fees

DANG that is a low rate! I just refinanced in March/April to 3.25% and at the time that was rock bottom. This is rock bottom!

Posted 9/29/20 10:49 AM
 

longislemom
LIF Adult

Member since 8/06

912 total posts

Name:

Refinancing Fees

I am in the process and the fees are 16K, which I think is exorbitant. I locked in at 3% but my credit score is 761 and I was initially told 2.8 so who knows what happened and Im not happy about that (unfortunately I didnt ask around). I cant wait to be done. Im starting to feel this is a big scam and a rip off.... this whole mortgage thing. Im only refi because I know I will be in the house for more than 5 years. Oh and I was not told anything about escrow.

Posted 9/29/20 8:14 PM
 

xosweetiexo
LIF Adolescent

Member since 8/09

854 total posts

Name:

Re: Refinancing Fees

Thank you everyone!! I totally feel like this whole refinancing business is a big scam. I was shocked as to what we have to pay at closing.. I didn’t think it would be that much.Chat Icon

Posted 9/29/20 9:35 PM
 
 

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