Refinancing your mortgage is a serious decision that will affect your life in the long run – imagine a couple of decades or more. Therefore, make sure you are well-informed about the factors affecting mortgage deals. In other words, what affects the value and the rate associated with mortgage refinancing.
So, have you decided to apply for a mortgage refinance in Houston, TX? Or at least in the process of making a decision? You might want to consider this: refinancing a mortgage is a balancing act. You have to be careful with your decision to get a favorable outcome.
To do a mortgage refinance in Houston, TX, means an opportunity to get a good amount of savings. You can also choose to shorten the loan term. These are achievable 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 determining the factors affecting refinance rates, particularly the associated costs.
With that said, here are the six costs associated with home loan refinance in Houston, TX, 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. Apart from that, you are also likely to pay for a loan underwriter – the one that helps 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 for your original mortgage, lenders require a new policy when you do a refinance.
Cost #3: Appraisal fees
Lenders will also require a new appraisal of your home. It is to justify the amount of the new mortgage. The value of your home has likely changed since the last you appraised the property. Thus, a new one may be necessary. And 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
There are associated taxes, and they are dependent 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 Texas.
Cost #6: Closing costs
The costs associated with the closing may also vary substantially depending on your unique circumstances. But a highly qualified broker should find ways to make it favorable to you when applying for a mortgage refinance in Houston, TX.
Online looking for a reputable mortgage company for home loan refinancing applications? Contact Homeplus Mortgage today at (512) 949-3385.
