Home Loan Refinance In Phoenix, AZ: Know The Associated Costs

February 24, 2022

Home Loan Refinance In Phoenix, AZ: Know The Associated Costs

By Published On: February 24th, 2022Categories: Home Loan Refinance, Home Loan Refinancing, Home Loans, Home Refi, Home Refinance, Phoenix AZ

Have you decided to apply for a home loan refinance in Phoenix, AZ? Or at least it has crossed your mind? You might want to consider this: doing it is a balancing act. You have to be careful with your decision to get a favorable outcome.

To home loan refinance in Phoenix, AZ, means an opportunity to get a good amount of savings. That is, of course, true if you can find the best deal. And the good news is, with the help of a reputable mortgage company or broker, you can realize this goal.

So, why is a home loan refinance considered a balancing act? Because you need to consider the cost down to the smallest detail in your decision. You want to ensure that the potential amount to save minus the associated costs generates a positive outcome. With that said, it makes sense that you figure out the number and do what the number is telling you.

Here are the six costs associated with home loan refinance in Phoenix that you should know about:

Cost #1: Application and underwriter fees

Just like in any application process, to refinance a home requires fees. Lenders impose an application fee to cover the associated costs at the start of the loan process. Along with it, you are also likely to pay for a loan underwriter who would help assess your financial capacity to pay back your new loan.

Cost #2: Title insurance

You also pay for title insurance as obligated by lenders (ask your broker about it to make sure). The purpose of this insurance is to dissipate any ownership disputes on the property during the loan term. Note that, although you may have bought a policy when obtaining your original mortgage, lenders require a new policy when you refinance your home.

Cost #3: Appraisal fees

Although not at all times, lenders will require a new appraisal of your home to ensure that it justifies the amount of the new mortgage. That is because the value of your home has likely changed since the last time of the appraisal. Thus, a new one may be necessary. Of course, this process has fees.

Cost #4: Credit score assessment fees

Although Federal law guarantees you a free copy of your credit report every 12 months, you still need to undergo a set of different qualifications or criteria for them to fulfill your request. In all likelihood, you will end up checking credit reports from other sources. That entails paying fees. Such fees will vary based on where the lender gets the credit check.

Cost #5: Taxes

Associated taxes depend on where you live. So, discuss the local tax laws with your broker to ensure that you still get your end goal for refinancing your mortgage – despite the possible tax requirements. Tackle the following: mortgage tax, realty transfer tax, mortgage recording fees in Arizona.

Cost #6: Closing costs

The costs associated with the closing may also vary significantly depending on your unique circumstances. But a highly qualified broker should be able to find ways to do it in your favor with your application for a home loan refinance in Phoenix, AZ.

Online looking for a reputable mortgage company for home loan refinancing applications? Contact Homeplus Mortgage today at 800-810-PLUS(7587).