Question by DLM: Home mortgage refinancing fees?
We bought our home less than a year ago and want to refinance. The bank that originally held our mortgage sold it to another bank. The bank that holds it now says they want us to pay for the title, lawyers and appraisal again. If all this was done less than a year ago why do we need to pay all these fees again?
Answer by bud68
Because you are applying for a new loan. That’s what a refi is – a new loan.
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These things are not typically addressed in a mortgage contract. You’ll need to negotiate to get them to waive this. I am guessing your motivation is to get a better rate. Then shop-around, chances are if you show your new bank another offer, they’ll be willing to play nicer.
Enjoy the ride!
Since you’re applying for a new mortgage the lender needs to do a title search to determine whether or not any encumbrances have occurred to cloud the title to the property. An appraisal needs to be done to determine the current market value of the house. Most lenders charge attorney’s fees to check over the mortgage/closing documents. There’s no avoiding these charges unless you can find a lender who will waive all closing costs.
It would not matter if you owed the home for a day and you wanted to take out a new loan with the same bank. That is the requirements for getting a loan. The bank does not know on your title if someone has put a lien on your home. So they will need to have the title checked for that. The appraisal is done because they want to know what the value of your home is today. You might have done improvements that has made your home worth more or it could have loss value and they are not able to give you a loan for more then the home is worth today. The lawyers fee is to close the loan. It has to be done legally and is sign in front of a lawyer or closer. So to re-fi a loan that is the way it is that you have to pay for these things. Maybe they can give you a deal on some of the other closing cost.
What you are facing is standard fare for refinancing. Lenders won’t use an appraisal a year old, especially in this market. They will want a very up-to-date value for your property The title has to be redone, in order to register the new lender’s lien on it, as well as being checked to insure that it is otherwise free of liens.
Expect that, every time you refinance in the future, you will face these same charges each time.
well That’s a good question . I understand the position of these lenders making it mandatory for these loan matrix to cover their butts and make this property and every other property do all new reports
. The Good Faith Est. your looking at contains normal charges , However ..The FED stim pkg is making local banks lend , so as a former loan officer Id say
It would be best to go to your local lender in your home town . Where the Loan officer / bank manager has the power to wave these fees or absorb them .