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Closing

PostHeaderIcon Refinance Closing Costs

Refi closing costs are the fees that one must pay during a refinance. There are various types closing costs. Some of these costs are lender fees, third party fees, and pre-paid items. Lender fees consist of origination, points, application, credit report and appraisal. Third party fees consist of company closing costs, title, and title insurance. Pre-paid items are not really considered to be closing costs, these are items you pay regardless of refinancing or not. They include your taxes and insurance of your property. As a whole closing costs typically range from two to six percent of your loan amount. When the refinance of mortgage is started you will get an estimate of these costs. Also if there is enough equity in your home, the costs may be rolled into the loan. This would save you from any money coming out of your pocket at the closing. Closing costs also fit into two categories; recurring fees and non-recurring fees. Recurring fees are your monthly payments, your taxes and insurance. Non-recurring fees are points, lender fees, and application fees. All these costs for your refinance can be laid out for you in a good faith estimate which can be requested once your application is complete.

To calculate refinance you can use a mortgage calculator. This can help calculate if you should refinance your current mortgage to a lower interest rate. Online there are various types of refinance calculator which would help you calculate your monthly payments and also how long it will take you to even out your closing costs. It is also nice to calculate a refinance before you go through with it to see how much you will be saving from your current rate and loan. There are many online web sources where you can go to and help you calculate the monthly payments.

To refi house means to refinance your current home or an investment property. A client may want to do a refinance to reduce their monthly payments, or to cash out some money of their equity. Also people with investment property will like to cash out money so that they can make improvement to this asset. Also some clients would like to refinance their mortgage if the current interest rates are significantly lower than their rate. Another reason to do a refi would be if a client is in an adjustable rate mortgage (ARM) and want to get a competitive low fixed rate.

PostHeaderIcon No Closing Cost

No closing cost refinance is true, but there is a catch a borrower who is refinancing must accept an interest rate that is a little higher. This happens because the mortgages are given higher rates than mortgages that have buyers who pay all closing costs. Usually, the loans have interest rates about 0.25 to .50 percent higher than other loans. The more interest is reworked as a yield spread for lenders, and it shows as a fund from which closing costs can be paid. A question that clients have is a no cost refinance good idea? If you are planning to stay in the home for a short period of time than a no cost refi may be a good option for you. If you are planning to stay for a longer period of time than getting the lowest possible interest rates available would be a better option.

When to refinance is always on a borrowers mind. When a borrower wants to refinance they should think about what they want to get out of it. A client should remember that a refinance does not get rid of debt it restructures it. A refinance is when one mortgage loan is paid off by a new mortgage loan. A time to refinance is when a client has a large amount of debt and wants to consolidate some. This can only happen if the property has value. Also a reason to refinance is when the interest rates or a percentage point or more less than your current rate. If a borrower also wants to change the term life of their loan, like from a 30 to 15 or 15 to 30 a refinance would be the answer.

A client also wants to know when should I refinance. A good time to refinance is when interest rates are lower than your current rate. If you want to tap into your equity a good time to refinance also. A client that’s thinking about refinance should take everything into consideration. One should take notice how much the new loan costs and how long you’re going to be in the new loan. To know if you should refi you should subtract your current mortgage payment from the new one your looking at and see if the savings or significant.

PostHeaderIcon Mortgage Paid, Escrow Mortgage & Mortgage Closing Costs

Mortgage paid is when a client has paid off the home mortgage loan. A mortgage is promises to a bank or lender that the loan taken out for the property, which is secured debt that will be paid back. Mortgage payment comes every month with a certain interest rate, which is deicide at the time of taken the loan out or when a refinance is done. When the mortgage is paid that mean the borrower now own the property and does not have to make a payment anymore. Another way to pay off the mortgage is by either sending in a little bit extra money a month or getting on a bimonthly payment schedule. A bimonthly means that you will be sending one extra payment towards you mortgage a year.

Escrow mortgage is when a borrower wants to have the taxes and insurance include in the monthly payment. To have this included in the payment the lender or bank sets up an escrow account. An escrow account is an account that is held in the clients name for things like property taxes and insurance premium. With this account when a refinance is done the company or bank holds the pervious taxes and a little bit just incase the taxes increase. An escrow account is a good idea because it will be one less thing that a borrower has to worry about.

Mortgage closing costs are when the fees that a borrower has when they either purchase a home or get financing or when the borrower does a refinance. The most common closing cost is called points. A point is a good way for a borrower to reduce the interest rate and this point can be tax deductible. Purchase points can also be known a buy down points or discount points this is the point that you pay to the lender to buy down to a lower rate. . Lender fees consist of origination, points, application, credit report and appraisal. Third party fees consist of company closing costs, title, and title insurance. Pre-paid items are not really considered to be closing costs, these are items you pay regardless of refinancing or not. These fees are broken down again by recurring fees and non recurring fees. Recurring fees are your monthly payments, your taxes and insurance. Non-recurring fees are points, lender fees, and application fees. The closing costs can also be rolled into the loan so that the borrower does not have to come to the closing with any money out of pocket.

PostHeaderIcon House Refinancing & Refinancing Closing Costs

House refinancing has been a huge deal in the last few years. When refinancing your home you want to see if the current interest rates are less than your current rate. One point or more is the goal that a borrower wants to when refinancing their home. Also if a client is in an adjustable rate mortgage than refinancing for a low fixed rate is a good idea. Home refinancing is can have a great benefit to a borrower monthly income, by this it mean that a borrower can lower his monthly mortgage payment and have more money a month to pay other bill or have a little extra money in their pocket. Refinancing your current mortgage simply means to pay off an exciting mortgage loan with a new loan at a new interest rate. A lower monthly payment is the result of refinancing for a lower interest rate this is called rate and term. Also due to refinance a borrower can change the term of there loan. This means that client have a 10 years mortgage, 15 years or a 30 years.  Also a borrower can cash out money out of their equity; this can only happen if the value of the property is there. Refinancing can be very beneficial it just all depends on the client situation and the market situation.

There are many different types of refinancing closing costs. These costs are broken down into three categories lender fees, third party fees and pre-paid items. Lender fees are points, loan officer origination, and credit report and appraisal fee. Third party fees are closing costs, title and title insurance. The pre-paid items are not a part of the closing costs but they a client pay these regardless of refinancing or not. They are the taxes and insurance of the property. Refinance closing cost are typically two to 6 percent of the loan. These costs are broken down into recurring fees and nonrecurring fees. Recurring fees are your monthly payments, your taxes and insurance. Non-recurring fees are points, lender fees, and application fees. Closing costs can be a good idea if a borrower is planning on staying with the property for a while because than they can get a lower rate, if no closing costs are paid than the interest rate will be higher.

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