Refinance Mortgage, Lowest Mortgage Rates - ERATE
   Best Mortgage Rates Source for over 15 Years

Personalized Mortgage Quotes
       
Refinance > Refinancing Series of Articles REFINANCE

Refinancing: Know the Process, and the Closing Costs

You’ve already got a mortgage, so you know what’s involved in getting another one. Right?

Yes and no. Refinancing, the process of paying off your existing mortgage with a new one, does involve many of the same steps as your original purchase. But there are some complications and new issues.



15 Year Fixed Rate Jumbo Mortgage Rates for Today
Alabama     Alaska     Arizona   Arkansas   Colorado   Connecticut 
Delaware     Florida     Georgia   Hawaii       Idaho       Illinois



The process of refinancing begins with information. Your lender will need to evaluate your eligibility for a refinance. This involves completing a loan application that assesses your financial situation and credit history – a sign of your ability and willingness to repay debt. In addition the application will require information on the property value of your home, based on current market value, as well as the equity in your home.

Information the lender will need as part of or in addition to your loan application:

  • Personal info:

    • Verification of your employment and income
    • Information on your debts and assets
    • Account numbers and balances for savings, checking and other accounts.
  • Mortgage information:

    • Current monthly mortgage payments
    • Outstanding mortgage balance
    • Status of your property tax and insurance payments and loan number.
  • Other information:

    • Appraisal to determine how much the home is worth. In many cases, an exterior-only appraisal is all that’s needed.
    • Title search to verify you own the property
    • Site survey. The survey completed when you first purchased the home may be sufficient. (This is not always required)

With much of the information above, fees will be assessed. And that is the most painful and perhaps most overlooked portion of the refinancing process.

Most of these fees will be very familiar to you as part of your original mortgage application and closing costs. The refinancing costs you will likely face include:

  • Application fee: Covers the lender’s processing time and effort
  • Appraisal fee: Charged by the appraiser to determine your home’s value
  • Credit report: As part of determining your debts, assets, credit and ability to pay back debt, lenders will usually order a credit report for a nominal fee. This also serves to verify information you’ve provided elsewhere.
  • Legal services: For review of the contract and other closing or consultation needs
  • Loan origination fee: Usually a percentage of the loan, this covers the lender’s work in evaluating and processing the loan
  • Pre-Payment Penalty: Your existing mortgage may require a percentage of the outstanding principal as a penalty for paying off the mortgage earlier than originally agreed. Many state and local laws govern this penalty; so check your original loan documents for details.
  • Survey: While the survey conducted when you first purchased your home may be sufficient, the lender may require a new survey of your property. Lenders want to ensure no significant changes that would affect future sales.
  • Title search: Charge for examining public records to confirm you own your property.
  • Miscellaneous fees: Depending on your loan type, you may incur additional fees, such as private mortgage insurance. Additionally, you may be charged document preparation, notary and tax service fees.

 

If you are refinancing with your original lender, some of these fees can be avoided or negotiated. For example, new appraisals are often not necessary. Check with new mortgage lenders on their flexibility on fees. You’ll find many willing to negotiate.

Learn more about refinancing with our continuing article series, including the reasons to refinance and types of refinancing, as well as common mistakes and ideal timing.

Related Article: Refinancing: Five Reasons to Rework your Mortgage



    Fannie Mae & Jumbo Mortgage Rates
    Just One Click!
= Current Rate Chart
Pennsylvania Mortgage Rates Current Mortgage Rates - Hawaii Current Mortgage Rates - Alaska West Virginia Mortgage Rates Virginia Mortgage Rates District of Columbia Mortgage Rates Maryland Mortgage Rates Delaware Mortgage Rates New Jersey Mortgage Rates Connecticut Mortgage Rates Rhode Island Mortgage Rates Massachussetts Mortgage Rates New Hampshire Mortgage Rates Vermont Mortgage Rates New Hampshire Mortgage Rates Maine Current Mortgage Rates Vermont Mortgage Rates Current Mortgage Rates - New York Current Mortgage Rates - Michigan Current Interest Rates - Wisconsin Current Mortgage Rates - MINNESOTA Ohio Mortgage Rates Current Mortgage Rates - Kentucky Current Mortgage Rates - Indiana Illinois - Current Mortgage Rates Current Mortgage Rates - Iowa Missouri Mortgage Rates Current Mortgage Rates - North Carolina South Carolina Mortgage Rates Current Mortgage Rates - Florida Current Mortgage Rates - Georgia Current Mortgage Rates - Tennessee Current Mortgage Rates - Alabama Current Mortgage Rates - Mississippi Current Mortgage Rates - Louisiana Current Mortgage Rates - Arkansas Current Mortgage Rates - Oklahoma Current Mortgage Rates - TEXAS Current Mortgage Rates - New Mexico Current Mortgage Rates - Arizona Current Mortgage Rates - Kansas Current Mortgage Rates - Nebraska Current Mortgage Rates - Colorado Current Mortgage Rates - Wyoming South Dakota Mortgage Rates Current Mortgage Rates - North Dakota Current Rates - Montana Idaho Current Rates Washington Mortgage Rates Current Mortgage Rates - Oregon Current Mortgage Rates - Utah Current Mortgage Rates - Nevada Current Mortgage Rates - California





Refinancing: Getting Started
  • Guidelines to Mortgage Refinancing
  • Why Refinance Mortgage?
  • Would Refinancing Make Sense for you?
  • Refinancing: 3 Common Types Refinancings
  • Refinancing: Four Mistakes to Avoid
  • Mortgage Refinancing Closing Costs Explained
  • Potential Tax Benefits
  • Mortgage Refinancing Calculator
  • Get Your Free Credit Report and Score!
  • Loan Documentation - Mortgage Refinancing
  • Refinancing FAQs
  • Appraisal when Refinancing
  • Refinancing - Non Owner vs Owner Occupied
  • Home Owners Litigation - Refinancing
  • Wikipedia on Refinancing
  • Today's Mortgage Rates

    Refinancing: Selecting a Loan
  • Mortgage Program Options
  • Interest Only Mortgage
  • 100% Mortgage Financing - No Down Payment
  • Mortgage Rates Comparison
  • Mortgage Rates Tracker
  • Search for Mortgage Rates
  • No Costs Mortgage Refinancing
  • 2% Rule - Refinancing Mortgage
  • Yield Spread Premium
  • Zero Costs Mortgage Refinancing
  • Prepayment Penalty - Mortgage Refinancing
  • What is APR and how is it calculated?
  • Private Mortgage Insurance - Refinancing
  • Moving Ahead With Your Refinance

  • Apply for a Mortgage
  • Is it best to pay points up front to reduce the interest rate?
  • Rate Lock info - Refinancing Mortgage
  • Refinancing Mortgage Tax Information
  • Should you pre-pay your mortgage?
  • Title Insurance for Mortgage Refinancing
  • Homeowner's Insurance
  • Earthquake Insurance - Refinancing Mortgage




  • Certificate of Deposit Rates

    Interest Only Mortgage - 5/1 ARM
    100 Percent Financing
    Option Adjustable Rate Mortgage (ARM)
    Home Equity Line of Credit (HELOC) - Zero Cost
    Commercial Mortgage - office, retail, apartment



    The First! In 1992, our founding company, LoanWorld, originated the first mortgage over the Internet.
    Then in 1994 we created the first online loan application.

    Find Today's Lowest Rates
     
     




    Loan Programs

    Adjustable Rate Mortgages

    Rates/Facts by State




     BBBOnLine Reliability Seal 

     Equal Housing Lender 

     Fannie Mae 
    HACKER SAFE certified sites prevent over 99.9% of hacker crime.
    ESPANOL  |  REFINANCE  |  HOME EQUITY  |  LOAN TOOLS  |  PROGRAMS  |  INTEREST ONLY  |  RATE QUOTE  |  LINKS  |  SITE MAP
    The information contained on this website is provided as a supplemental educational resource. Readers having legal or tax questions are urged to obtain
    advice from their professional legal or tax advisors. While the aforementioned information has been collected from a variety of sources deemed reliable,
    it is not guaranteed and should be independently verified.
    Copyright ©1999-2008 ERATE · All rights reserved · California Dept of Real Estate · Real Estate Broker #01292265 · DRE Phone (916) 227-0931
    ERATE · 2900 Gordon Ave · Santa Clara · CA · 95051