Mortgage refinance costs differ tremendously between lenders, however here we attempt to provide a description of the different mortgage refinance costs that you might find. When shopping for a new mortgage, there are several ways to lower the cost of your mortgage:
- Shop around. The most important thing you can do to lower your mortgage refinance costs is get quotes from a number of lenders. This way you'll be able to contrast and compare the rates and fees provided by the different lenders and negotiate the best deal.
- Check your credit. Make sure your credit record is correct. The credit reporting agencies frequently make errors on your credit reports that may adversely affect your credit rating.
The most common mortgage refinance costs include*:
| Application Fee | $ 75 to $300 |
| Appraisal Fee | $150 to $400 |
| Survey Costs | $125 to $300 |
| Homeowner's Hazard Insurance | $300 to $600 |
| Lender's Attorney's Review Fees | $ 75 to $200 |
| Title Search and Title Insurance | $450 to $600 |
| Home Inspection Fees | $175 to $350 |
| Loan Origination Fees | 1% of loan |
| Mortgage Insurance | 0.5% to 1.0% |
| Points | 1% to 3% |
* Data from the Federal Reserve Board and Office of Thrift Supervision
As you can see, a mortgage refinance may carry fixed costs from $1350 to $2750 and variable costs from 2.5% to 5% of the loan value. Although a mortgage refinance may save a lot of money in the long run, it can be expensive to undertake.