The cost of a mortgage refinance is going to depend on a number of factors like how large the mortgage is and where you live. The first fee that you are going to have to pay is going to be the loan application fee; this can range from about fifty dollars to more than four hundred depending on where you live and the bank that you use.
The next fees that you will have to pay are to have your home appraised and inspected. The home appraiser will determine the value of your home while the inspector will determine the condition of the house. Almost all lenders will require that these be done and you can expect to pay between five hundred and a thousand dollars for it.
The next fee to be paid is the title search and title insurance. This is to ensure that you are the rightful owner of the property. The insurance is to cover the lender in the event that there was an error in the title search and they lend you money for a property that you don't actually own. Expect to pay seven to nine hundred dollars for this.
The next fee that has to be paid when you refinance is private mortgage insurance. This is only required if the amount of the mortgage is more than eighty percent of the value of the home. In general you will need to pay about one percent of the amount of the loan. This is not really an additional expense if you refinance since you were probably paying this on your original mortgage.
The next fee is any points that you choose to pay on your mortgage. A point is an upfront payment that reduces the amount of interest that you have to pay. Each point will equal one percent of the value of the loan. Generally refinances are done with between one and three points.
The next fee that has to be paid is the loan origination fee. This is a fee that the lender will charge you in order to do the paper work that is required for the refinancing. You can expect to pay between one and one and half percent of the value of the loan for this.
The last fee that you have to pay to get a mortgage refinanced is for the lawyer who looks over all of the paper work. This will generally cost about a thousand dollars. This is the fee for the lawyer who reviews things for the bank, if you want to have your own lawyer this will be an additional cost.
The above are the fees that are required to get a mortgage refinanced; there is one other fee that you may have to pay. In many cases there will be a prepayment penalty on your existing mortgage. This can be up to six months payments depending on the terms of your loan.