How much does it Cost to Refinance?

 

Refinancing your mortgage can lead to a multitude of things like a lower rate of interest, convert equity into funds, and shorten your term of the loan.

But it doesn’t mean you would blindfold run into refinancing rates!

As a matter of fact, “you cannot overlook the importance of closing costs”.

Estimating the Cost to Refinance

For those who don’t know, the average closing costs for a mortgage refinance are nearly $5,000, depending on the size of your loan and your residence.

In general, you might need to pay 2 to 5 percent of the amount of the loan principal in closing costs.

Let’s say!

For a mortgage refinance of $200,000, you closing costs could run $4,000 to $10,000.

How to Lower the Cost to Refinance?

If you are looking for the lowest refinance rates, there are many ways you can do to lower your costs.

1. Increase your credit score

Always remember that “When refinancing, the better your credit, the lower would be the rate of interest rate”.

If you are looking to get the best refinance rates, you need to work on enhancing your credit before you can actually refinance. Don’t forget to check your credit report and thoroughly go through it to find out errors.

And when it comes to maintaining your credit by paying all your bills on time, try to keep the balance of credit card below the limit. Make sure you try to pay more than the minimum amount.

 

2. Compare mortgage offers and rates

To get the right refinance rates, make sure you compare the rate of refinancing from different banks and mortgages. To make your investment a lucrative one, make sure you work with a mortgage broker like PureLoan to get a multitude of offers.

The best part is that you may even get discounts or special deals that could substantially minimize your overall costs.

 

3. Always Negotiate the Costs of Closing

To see the breakdown of costs, you need to look closely at the loan estimate from your lender. If you’ve more than one refinance offer in hand, you can easily save significant bucks by negotiating closing costs.

If you witness that some fees are beyond the range like underwriting fee, application fee, then it’s incredibly important for you to ask the lender if these can be lowered.

“To avoid such scenarios, your best course of action is to do some comparison shopping.” In terms of closing costs and interest rates, it’s worth shopping around for the best prices.

“It’s not so much about negotiating as it is shopping around for the best prices, both in terms of interest rates and closing costs.”

4. Don’t forget to ask for fee waivers

Make sure you ask your bank or lender if they can easily lower the credit check fee or application fee.

Make sure you can even check if it will let you forgo a new home appraisal or survey. If you are an existing consumer, check whether your lender may be willing to work with you.

5. Assess whether to buy mortgage points

Looking for the lowest refinance rates? If so, make sure whether buying a mortgage is a lucrative investment or not.

If you are looking to own a home for a long, then buying points lower your interest rate. Make sure you use a mortgage refinance calculator to evaluate whether it’s a good thing to buy points when refinancing.

 

6. Stick to Your original title insurer

By asking your current title insurance company, you can try to cut down your title services costs. When you do so, you’re likely to incur less cost than starting over with a new company.

 

Bottom line

There’s no denying that closing costs on a refinance can be substantial, so it’s important for you to shop to get the best rate.

If you are looking to  lower refinance rates, then it’s worth trying to negotiate with the lender.

Are you looking for one? If so, PureLoan is here to help you out!

PureLoan is a leading online destination that may provide you the right refinance rates to make your home as affordable as much. With a dexterous crew of experienced professionals, we can search from a range of mortgage programs so you can choose from more than 40 national banks and counting.

To learn more about the best refinance rates, visit https://www.pureloan.com/ today!