October 10, 2020
3 MINUTE READ
If you’re refinancing your mortgage for the first time, you may not have any idea how much a new lending agreement will cost. It’s critical to have a ballpark figure for refinancing costs in order to determine how much money you’ll save in the long run with lower mortgage payments.
Many homeowners pay 3 to 6 percent of the outstanding principal in refinancing costs, according to the Federal Reserve Board. For example, on a loan of $100,000, the refinancing cost might be around $3,000 or $4,000. This is a significant amount of money, so it helps to understand how it stacks up against your eventual savings with a refinanced mortgage.
To determine how costs compare to savings, and how soon you’ll see financial benefits from refinancing, the Federal Reserve Board suggests calculating the break-even point. You’ll have a better idea whether refinancing is a good move if you compare the break-even point with the amount of time you plan to own the home.
Below are some of the standard costs that are part of an overall refinancing package:
Reali Loans gives you a custom quote and then shows you all the costs associated with each option. Compare all your available loan options and choose the best one for your situation. Since you’re able to complete your Reali Loans application online you get to enjoy lower rates and avoid the high fees charged by the big banks.