Question by : What is the typical amount charged for fee’s when you refinance your mortgage?
I have recently received a few quotes on refinancing my mortgage, and 5600.00 in fee’s seemed a little high. Loan was for 175k. Are these guys trying to rip me off, or is that about right for a refi?
Answer by Jenny
Closing costs and fees generally add up to about 5k. If you’re suspicious or unsure of why it’s so high, ask for a Good Faith Estimate which is a breakdown of how it adds up to be so high. By law, lenders have to provide you with this. If you’re unsure what some of the itemized costs are for or why they’re necessary, here’s an article that explains each cost in detail. Hope this helps.
Basically, this explains in detail what is listed below by the other answer, plus a few other fees.
Know better? Leave your own answer in the comments!
For a loan amount of 175k, there are usually third party fees of about 3000 dollars. The remainder looks to be 2600 dollars… 5600-3000=2600.
2600 is about 1.5% of the loan or 1.5 points. I believe this is a fair price; however, you may be paying more “on the back” in the form of a higher interest rate. Be sure to do your shoppping, but keep in mind, there’s always someone willing to do it for cheaper… what truly seperates any financial advisor is their service and speed.