Advice on Cashout Refi or HELOC fees - Harrisburg PA

3 Replies

Bank quoted me 7K for refinance costs which seems high?? Would prefer a HELOC as I do not need the cash at the moment but have been unable to find a lender to do this. What are normal costs associated with doing a cashout refi or HELOC??

These days you can build the bulk if not all of the costs into the refi. This typically bumps the rate up slightly but for a normal cash out refinance that larger loan size generates more revenue the bank can apply towards covering costs. There are standard costs with each and there are more with a cashout refi over a HELOC. The HELOC at your local bank (where you hold your checking) should offer you low cost options.

Do you know if the $7k figure included your new escrow account? This is your money being held in escrow for when your taxes and insurance payments are due. 

For another quote on a standard cashout refi I recommend Guaranteed Rate or a large volume mortgage company that specializes in doing mortgage. 

@Dean Deimler

Yeah I’d look into the details and see what is included in that 7k. They typically break out your escrow costs from all of the fees.

If you provide the size of the loan, terms, and breakdown of the costs/fees then we could help you a lot more. I’ve paid 7k or more in total closing costs and I thought they were pretty sweet deals.

Depending on the size of the deal, 7K in closing costs isn't bad. Remember, a lot of those are title company fees as well. I know there are a lot of lenders who charge only a flat fee/origination percentage basically to keep their lights on but everything else comes from the title company. 

When doing a refinance, you have the right to pick your own title company, so if you find one that'll do it more cheaply then by all means, use them. A lot of the title company fees are state mandated, so I don't know how much wiggle room they have but it's something to keep in mind. And as a couple other people mentioned, that may include your escrows too. You'll get a refund of whatever is currently in your escrow account because the new lender will set up a new escrow account for you, so that may hopefully negate some of the costs.