Refinance Cost

Refinance Cost is the cost associated with refinancing a home.

Sadly enough, refinance does not come for free and at times, the cost of refinancing maybe a factor affecting your decision of whether you should refinance or wait.

Refinancing Points

A refinancing point is 1% of the loan amount. Typically, brokers charge anywhere between 1-3 points to originate a loan. In addition, points maybe used to buy down an interest rate on a loan.

If you intend to keep your home for a long time, it may make sense to pay points and lower the monthly payments by getting a low interest rate. On the other hand, if you are unsure about how long you will be in the home, it maybe more prudent not to use points to buy down a loan.

The decision is not always so simple, since people are not really sure about how long they may be in the home. Based on a simple calculation of how much you can save every month by paying a point and how long it will take to cover the cost of paying the point, you can determine if it is in your best interest to pay points to buy down the interest rate.

Appraisal Cost

A refinancing usually needs an appraisal and the cost of an appraisal usually ranges from $350-$450 or more depending on the value of the home. Typically, this cost is paid by the borrower.

Other Fees

• Processing Fees


• Lender Funding Fee


• Administration Fee


• Title Insurance and Title Settlement Fees


• Government Recording Fee


• Interest to date






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