What is the average cost of closing on a home refinance loan and why is it so high? I being charged $6500!?

Question

My credit rating is 581, is this why??

Answer 1

Closing costs vary greatly by lender. There are some that are fixed figures, but the rest is tied to the loan amount.

Shop around a bit, ask for a truth in lending good faith estimate of closing costs. And don't stop there. Ask about transaction fees, pre-payment penalties, late fees - anything that could also cost you money down the line.

Make sure you are comparing apples to apples before you sign on the line.

Answer 2

Most of the refinance charges vary with the size of the loan. There are a lot of people that have to get paid, and not all of the closing costs are really "costs".

You have the bank charges, and these can vary from zero to 2% of the loan.

Then you have "prepaid" items, including interest to the end of the month, and the amount they want to hold in the escrow account to pay your taxes and insurance when due; these can be several thousand dollars, but that's still your money, even after closing.

Then you have the attorney fees, including the title search and title insurance, and filing in the Land Records, and probably plus the cost for the closer to send the docs back in the overnight mail.

Your credit score impacts the loan availability and the interest rate, it doesn't impact the closing costs so much.

Answer 3

An average figure would be meaningless. The cost depends on many factors, such as legal fees, stamps, title insurance, whether the loan includes points, prepayment penalty on the old loan, etc. You can ask for a complete breakdown of all costs before you sign anything. If any part is not clear, ask to have it clarified. Some items are required by law, some by the lender, and some may be optional. If the loan is for $50,000, the amount is too high. If it is for $500,000 it may be very reasonable.

Answer 4

you will be able to desire to remember this maximum sub prome mortgages are 80% -20% loans meaning that if the dwelling house forecloses then whoever loaned the 20% loses out. to no longer point out those properties are short revenues if the dwelling house has a private loan for 150k maximum probable the dwelling house will short sale for 80k so each and all of the lenders that did 20% seconds lose each and all of the money they loaned! nationaly thats alot of funds and particularly some lenders are shutting thier doors. hudge fund funds isn't being placed into subprime industry using possibility making it no longer elementary for lenders to locate funds to very own loan! as a great way using fact the wealthy crying many hedge funds are funded via retirement portfolios like yours and your fathers they make presented an incredible return for little probability. a number of those funds will take extensive lossses. dont think of its the wealthy who has moeny interior the hedge funds alot of the money isn't a go with few wealthy investors the everyday public is human beings such as you and that i who purely comprehend they have a 401k or some thing like it. so y ou are completely incorrect while a borrower defaults he ccauses the lender to pay alot of moeny to record in courtroom and then take a lose on what they placed out. additionally be conscious dwelling house values are coming down so a lender wil be fortunate to recoup 50% of what they have placed out! to no longer point out what they might desire to pay in criminal expenses to foreclose and public sale off!

Answer 5

HAHA, your Lucky to even have a loan especially the way the market it is.