Home Loan Refinance

Why refinance your home?

There are two reasons why people refinance:

• Get cash
• Get a new interest rate in order to lower the loan payment

How much will it cost to refinance?

Possible fees you may encounter while refinancing your home loan:

• Credit Report - Your loan broker will incur charges when he pulls your credit report. He will pass this fee onto you.

• Appraisal Fee. A traditional appraiser may be hired to estimate the value of your home. If an appraisal is required, an individual will visit your residence and inspect your house and property. Some lenders use alternate means of appraising your home and can establish a value without incurring any addional cost to you.

• Processing Fee. Your broker needs to pay an individual to properly assemble the loan documents for your home refinance.

• Origination Fee. This is either a flat fee or a percentage of the total loan amount. If it is a percentage-based fee, it will be expressed in points. A "one point loan" means that the broker is charging you 1% of the total loan amount. For example: A "two point loan" of $100,000 will incur an origination fee of $2,000.

• Lender Administration Fees. Most banks will charge their own administration fees for every refinance loan they provide. Your broker has no control over these fees.

• Broker Administration Fees. The company your loan officer works for may require in-house administration fees to be applied for every loan that gets processed. You should always ask about in-house administration fees before you submit a loan application. Most of the time you can get these fees waived.

"Only a fool accepts the first offer in a negotiation. "

How many quotes do you have for your refinance?