Commercial mortgage bank fees when refinancing
I'm in the process of refinancing 2 rental properties with 100% equity. The deal is structured as 2 loans, one for $210,000 and one for $185,000. The loan carries a 25 year amortization with a 10 year term that adjusts at year 5. The rate is 4.875%.
Fees for each loan:
$1000 commitment fee
$525 appraisal
$2750 bank attorney review
Standard NJ Title fees
Everything above seems fair to me, except the $5500 in bank attorney fees. This is for their attorney, not my own which will be another $1200 or so.
Is it customary for the investor to pay the "bank attorney review fees" when refinancing out your equity on rental properties? (when using a commercial loan) @Brandon Turner
Most Popular Reply
Those fees are totally standard. In fact, I'm surprised that there aren't any other due diligence fees (environmental, etc) or tax monitoring fees. Your attorney charging $1200 is the strange part. For 2 commercial loans it should be closer to $5,000, maybe a little less because they are small loans. These won't be form documents like for residential loans, so the bank's attorney has to actually take the time to draft each one for this deal, review title in depth, negotiate loan documents, prepare settlement statement.