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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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