Refi Time

April 1, 2008 4:15 PM

How much should one expect to pay for fees on a mortgage refinance?

Are the figures for the fees on the "good faith" estimate actual or negotiable? We were originally told one number for closing fees, a different number showed up on our good faith estimate. If it matters, we are not going through a bank, but a private mortgage broker.

Thanks in advance.

posted by 6:1 to work & money (8 comments total)

Assuming you're in the US - estimate between $3,000 and $4,000 for a standard refi.
posted by mark7570 at 4:50 PM on April 1

Join creditboards.com and post your 'GFE' in the mortgage forum.

The other members who are actually very knowledgeable, most of them have direct knowledge of the industry, will give you the heads up. You can also ask them what's negotiable.

Good luck!
posted by jerseygirl at 4:51 PM on April 1

Some fees are negotiable, others not so much. Title fees, appraisal fees, and underwriting fees are not negotiable as they are third party fees for a broker. Anything payable to the brokerage (origination fee, broker fee, processing fee) is negotiable. The loan officer may choose to stand firm on the fees if he/she feels they are fair.

Being told different amounts verbally and written may be a red flag, but don't confuse settlement costs and closing costs as the good faith also shows per diem interest and escrow reserves.

It would be hard to say what you should expect to pay because title fees and appraisal fees vary by state. For origination and broker fee combined: no more than 1 - 2 percent of the loan size. Also, look for compensation paid to broker not coming out of loan proceeds. You can find this line in the bottom third of the good faith.
posted by curlyelk at 5:02 PM on April 1

I've refi'd a couple of times, and the credit union has been the best by far. Best rate, best fees.
posted by theora55 at 5:42 PM on April 1

Have you checked directly with your current lender? Mine gave a no-fee refinance last year, which was a lot better than the 2% or so the other lenders wanted to charge. Also, call a few credit unions -- I am not looking to refinance again, but my credit union recently sent a newsletter advertising that they provide refinances with no origination fees; I assume other credit unions have similar programs.
posted by Forktine at 5:54 PM on April 1

I think it is very negotiable. My private mortgage broker offers "fee-free" refinancing - basically she covers all the costs except for $500 - $600 out of her compensation. I doubt it is a big money maker for her but she can cover all the costs out of her fee and keep her existing customers happy and likely to use her for their next home purchase.
posted by true at 8:21 PM on April 1

One thing about fees etc. is that brokers can & do get paid via their "YSP".
posted by tachikaze at 10:57 PM on April 1

We paid the equivalent of about 1% (or about $3500) of the amount refinanced when we went through it earlier this year with Chase, who was the original lender.
posted by MrMoonPie at 6:41 AM on April 2