Closing cost for refinancing mortgage

[emanon1501]

I got two different estimate on closing cost. One was 10k and other was 13k. That’s crazy. Mine was like 3k 3 years ago. Is this the new norm?

[myrdale]

That is crazy. A quick google search says it should be 2 to 5% of mortgage. I thought my was around $1,500 in 2006 on $108k. And when I refinanced in 2011ish I thought it was in the range of $800 on $52k.

[riverwed070707]

Um yes that's crazy. Refi'd my primary in May and closing costs were $1,100. $3-4k isn't unheard of. I'd keep shopping. With closing costs that high, you'd be better off just throwing that money at your principal and asking them to do a rebalance.

[Jluke]

What is included in the closing costs?

are you funding an escrow account with some of this money?

paying points?

interest charges?

need to break it down.

[~bs]

I got two different estimate on closing cost. One was 10k and other was 13k. That’s crazy. Mine was like 3k 3 years ago. Is this the new norm?

Costs is going up because lenders are including extra costs due to a rule change requiring a 0.5% of loan origination fee for loans backed by freddie/fannie mae. You will get a much lower interest rate, but offset by these fees. This fee is due to the additional risk that the current environment presents. Mortgage originators are passing it on NOW, otherwise they'll get stuck with the fee since it's likely too late to originate the loan, close, then sell to fannie mae by 9/1/20. So unless people looking for refinances are willing to pay the large up front fee, they missed the refinance boat.

The government-controlled mortgage companies announced late Wednesday that they will levy a 0.5 percent fee on refinance loans they purchase starting on Sept. 1. A new surcharge that Fannie Mae and Freddie Mac are imposing on mortgage refinancings has united industry groups and consumer advocates in outrage.

[bjl584]

I was quoted $5K in closing fees last week.
No thanks.

I'll keep shopping around

[LivingAlmostLarge]

I am at $3000-$3500. For our personal reasons we are staying put. And the savings on the refi though only .25% isn't a ton the extension from 4 to 7 years is pretty nice. We will be saving about $400/month so about 9 months breakeven.