Lewes, DE · Member since 2017 · 50 posts · 17 votes
Hello. The "search" option is not working for me at the moment, so I wanted to get some insight for a topic I am sure that has been discussed before.
Basically is there typically a difference in cost on closing costs for a cash out refinance? or is it essentially the same (roughly 6%) as when I originally purchase the house? Just trying to accurately run some number scenarios.
I have a bank willing to lend 75% and I am waiting to hear back on my scenario, I just want to know what's normal.
I would expect similar closing costs to the purchase, but round up. The origination fee might differ from lender to lender, but my guess is that it will be a percentage, and you will have a new loan balance. If you use the same lender, they may be able to use cut you a deal, and the same goes with using a title company than you've used on the purchase. They may be able to give you a deal, if you ask.
A cash out (in my own refinancing history) has higher costs than a rate and term or than a lower LTV amount.
Hello. The "search" option is not working for me at the moment, so I wanted to get some insight for a topic I am sure that has been discussed before.
Basically is there typically a difference in cost on closing costs for a cash out refinance? or is it essentially the same (roughly 6%) as when I originally purchase the house? Just trying to accurately run some number scenarios.
I have a bank willing to lend 75% and I am waiting to hear back on my scenario, I just want to know what's normal.
Thanks!
Yes, it is very similar:
Common costs for refinancing:
Lender points 1 - 2% (some lenders have a minimum) Some lenders offer higher rates and waive points.
Broker points .25 - 3% (if you use a broker or referral agent)
UW fees $750 - 2000
Legal review $500 - 750 (if closing under LLC etc) Not necessarily used by all lenders
Closing costs of the loan $500 - 950 Not necessarily used by all lenders
Appraisal Starts at $350 (3rd party charges)
Title and Escrow 1 - 4% (3rd party charges) (2% average)