i've only been in this house a year and a half. I dont have a fixed rate. my house payment just went up.
2007-07-02 08:28:16 · 7 answers · asked by free taco 1 in Business & Finance ➔ Renting & Real Estate
There are always costs to a refinance...they're just not always visible.
If you get a no cost, no fee refinance, what is actually happening is you are paying a higher rate due to something called YSP...or rebate, which is how the broker, loan officer or direct lender gets paid.
You are not alone in seeing your fixed period end, but don't panic. Knowing your type of loan, your loan to value ratio, and the home value will improve the quality of your answers.
Refinance after you become educated...especially with the Pay Option and Hybrid ARMS which rob you of equity and can get you in more trouble than you want, so tread carefully.
You can e-mail or call if you want to chat in more detail about your specific situation.
Regards,
Robert Noakes
Real Estate Investment Consultant
Sr. Mortgage Planner
415.652.8112
robert@noakes.com
2007-07-05 19:36:24 · answer #1 · answered by Robert N 1 · 0⤊ 0⤋
Generally you have to pay closing costs as well as other processing fees. Some places run ads for no cost refinancing, but I think the way those work is that the closing costs are rolled into the mortgage. If you have a variable rate mortgage, you definitely need to refinance to a fixed rate.
2007-07-02 15:31:50 · answer #2 · answered by jamie5987 4 · 0⤊ 0⤋
You generally can't refinance until after two years.
It should just be the cost of the application - normally less than $100.
Definitely try to get a fixed rate - mine is fixed for 5 years, but then can change after that. I'm going to try to refinance next year.
2007-07-02 15:36:41 · answer #3 · answered by Joe M 5 · 0⤊ 0⤋
There are usually fees involved, but they can often be included in the refinancing.
If you have a variable rate loan and can refinance to a fixed rate at a reasonable cost and interest rate, do it!
2007-07-02 16:01:10 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
Yes, you will have to pay money to refinance. There will be closing costs on the new mortgage, maybe discount points (to get a decent rate), prepayment penalty (if there is one on your current mortgage) and depending on the state that you live in, there could be taxes you will have to pay as well. Shop around... Good luck to you!
2007-07-02 16:44:07 · answer #5 · answered by momma_duke 2 · 0⤊ 0⤋
Most of the time the only out of pocket cost is the appraisal fee. The other fee are rolling into the loan.
2007-07-02 16:20:45 · answer #6 · answered by ron d 3 · 0⤊ 0⤋
Yes, there always fees. The vary depending on the state you live in and what you negotiate with your lender.
2007-07-02 15:31:11 · answer #7 · answered by Anonymous · 0⤊ 0⤋