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PostHeaderIcon Insurance Estimate, Debt Refinance & Mortgage Fee

An Insurance estimate can be obtained by calling different insurance companies. Homeowners’ insurance differs from company to company, also do their requirements. Typically homeowners go to the same company they have their car insurance or other insurances because it is usually cheaper. When refinancing a mortgage the lender requires the borrower to have insurance on the property. During a refinance a client can also want their taxes and insurance included; this is called an escrow account. An escrow account is required by the lender if you owe more than eighty percent of the property.

A debt refinance typically mean a client wants to refinance their home for a better rate and also consolidate some debt. Debt consolidation is when a client want to use a large loan to pay off smaller loans for possible a lower rate. Usually a client will consider consolidating debt when the monthly payments become too difficult to pay. This refinance can be very beneficial for people to knock off credit card debts and other revolving debts into one loan with a low fixed rate. Also for debt refinance to work their must be equity in the home. When doing the refinance the company will send out a certified real estate appraiser to have an accurate appraisal done on the home. This will determine your loan to value, in which this will tell how much debt a borrower can consolidate. Debt consolidation can be very beneficial to a client by which their debt can go into a bigger loan with a low rate and more affordable.

Mortgage fees are typically including the following: title and escrow fees, lender’s fees, appraisal fees, credit fees, and insurance and taxes. When you refinance, you have the option of financing the closing costs by adding them into the new mortgage balance or you may cover the costs with cash at closing. The 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. A client also has the option of financing the fees, only if there is value in the property to do so. If a client decided not to have closing costs this will result in a higher rate, to cover the costs with the loan originator yield spread.

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