Talking to you about Closing Cost on a Refinance
I get asked about this a lot “Hey Scott, how much are my closing costs
on a refinance since I bought the house?”
About the same.
Look, closing costs don’t change a lot depending on the purpose of the loan
Now, where a lot of people get tricky… In my business
Is they talk about the difference between
out of pocket closing cost and total closing cost
So look, generally speaking, you are always going to pay for
an appraisal up-front $450 – $500
On a refinance, the rest of those cost are rolled into the loan
Let’s say you owe $200K on your current house
You want to roll in your closing cost, maybe the new loan amount
is $204K or $208K, or whatever the figure is.
We have to make sure that we understand the pros and the cons of that
Also, understand when you are financing and in those closing costs
You are paying interest on those for many years
It also has to be factored in to the equation
What about the advertisements where you see
“Hey NO CLOSING COSTS!”
Listen, we could all do No Closing Cost loans
But here’s the deal, your interest rates are higher, right?
If it sounds too good to be true… it… it is! (remove this redundant)
Well if it sounds too good to be true, it is
There is no such thing as a “No Closing Cost” loan
Unless the interest rates are slightly higher
You have got to understand that most closing costs
Don’t go to the bank, they go to things like
Title Insurance which is required
County fees which is required
Recording fees which is required
Setting up Escrows which is required
These are required expenses, the money has to come from somewhere
So, don’t be tricked into that “BS” advertising
That’s what I got for you on closing costs
If you have any questions or you want specific numbers
Reach out to me, I’m Scott DiGregorio, I’m Your Mortgage Guy
I’ll talk to you soon.. Take care.
