To refinance your mortgage is to make a serious decision that will affect your life in the long run – a couple of decades, more or less. Therefore, you have to be careful and make sure your decision is well-informed about the factors affecting mortgage deals. For instance, what affects the refinance rate? What are the costs associated with mortgage refinancing? We will discuss more on the second question in this post.
So, have you decided to apply for a home loan refi in Orlando, FL? Or at least it has crossed your mind? Here’s the thing you may want to consider: doing it is a balancing act. You have to be careful with your decision to get a favorable outcome.
Applying for a home loan refi in Orlando, FL, offers 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 – by understanding the mortgage dynamics, such as the factors affecting the rates, particularly the costs.
So, here are the six costs associated with home loan refinance in Florida that you should know about:
Cost #1: Application and underwriter fees
Refinancing a home requires fees. Lenders impose an application fee to cover the associated costs at the start of the loan process. In addition, 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 are to pay for title insurance (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: 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. And that entails paying fees. Such fees will vary based on where the lender gets the credit assessment service.
Cost #4: Taxes
Discuss the local tax laws with your broker to ensure that you still get your end goal with refinancing your mortgage – despite the possible tax requirements. Tackle the following: mortgage tax, realty transfer tax, mortgage recording fees in Florida.
Cost #5: Appraisal fees
Usually, lenders require a new appraisal of your home to ensure its value merits the new mortgage loan amount. 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 #6: Closing costs
The costs associated with the closing may also vary significantly, owing to your unique circumstances. But a highly qualified broker should be able to find ways to do it in favor of your application for a home loan refi in Orlando, FL.
Online looking for a reputable mortgage company for home loan refinancing applications? Contact Homeplus Mortgage today at 800-810-PLUS(7587).