What Closing Costs Can Be Negotiated When Refinancing A Mortgage ?
Usually people refinance their mortgage when they want a lower interest rate. However, even when refinancing, a person would still have to pay closing costs for the new loan. The good news is that when a person refinances a mortgage, there are some closing costs that can be negotiated to bring down the overall cost.
So, what closing costs can be negotiated when refinancing a mortgage? When you refinance a mortgage, the lender will first check all the details like your income, credit rating and the equity built on the house. The refinancing will depend on these factors and if they are favorable, then the new mortgage will be sanctioned.
Once the mortgage is approved, you will be expected to pay the closing costs. At times, the cost can have a lot of hidden fees and this can drive up the cost. So, before you close the mortgage, make sure that you get an estimate of the closing costs. Usually, the closing costs will include application fees, origination fees, processing fees, appraisal fees, discount fees, title insurance, prepayment penalty for the current mortgage that a borrower has.
Out of these fees, some of them can be negotiated. For instance, you can negotiate application fees, processing fees, origination fees and discount fees. These vary from one lender to the next and if you have a good credit rating, the lender would be more than willing to reduce them to a certain extent. You can also save money on title insurance and appraisal by getting them done yourself.
More Articles :