Beware The Hidden Costs of Refinancing
August 20, 2008
By Glen Hooke
With so many homeowners refinancing, it is tempting to jump on the bandwagon, especially with the current low interest rates and appealing offers that are popping up all over the place. While in many situations refinancing can be a wise choice, it is important to note that it is not without its own costs.
Some refinance companies charge an application fee to begin the application and refinance process. This is an upfront cost that is never rolled into the new loan amount and must come out of your personal funds. There are lenders who do not charge application fees, and some of the lenders who do often run promotions where the application fee is waived.
You might remember when you bought your home and took out your mortgage, there were costs and fees involved that you had to pay. When you refinance, those same fees and costs must be paid all over again, though they can sometimes be rolled into the new mortgage. If you don’t think that you are paying for things like settlement costs and points, think again. Even if you don’t have to bring cash to closing, the lender has probably added these costs into the term of your loan. Be sure to check and see exactly how much they are charging you and how much money for these expenses is being rolled into your new mortgage balance. To have a lower monthly payment, you are going to wind up paying more points. To pay lower points you are going to need to make a higher monthly payment.
Another possible cost that you have to be aware of when you are considering refinancing is whether or not you have an early payoff penalty on your current mortgage. Sometimes these fees can be steep, making it pointless to refinance if the fees exceed the amount you will be saving by refinancing in the first place.
While there are costs involved with refinancing, in the majority of cases, it still pays off in the long run. Refinancing can save a homeowner tens of thousands of dollars - a rather large sum compared to the amount spent on refinancing.
Written by Glen Hooke
About the author:
** Attn Ezine Editors / Site 0wners **
Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify the content and include our resource box as listed below.
Discover how you can get out of that 30 year mortgage, pay off your home in 10 years (or less) without refinancing or changing your mortgage…. and build equity in your home ten times faster than you ever thought possible……
Visit: http://www.BeMortgageFreeSooner.com
Want to sell your home for more, (or buy your next home for less) without being trapped, taken advantage of, manipulated or ripped off by slick real estate agents……Visit: http://www.InsidersRealEstateSecrets.com
More Posts..
Choosing the Right Car… the Key to Fall Adventure
7 Strategies to Make Room for Money
11 Responses to “Beware The Hidden Costs of Refinancing”
Leave a Reply
You must be logged in to post a comment.
August 20th, 2008 at 09:24
[…] Straps & Protectors News » News News Beware The Hidden Costs of Refinancing2008-08-20 02:24:33Cases, tens of dollars - a homeowner tens of thousands of cases, it still pays […]
August 20th, 2008 at 09:30
[…] http://www.assforahat.com wrote an interesting post today onHere’s a quick excerpt By Glen Hooke With so many homeowners refinancing, it is tempting to jump on the bandwagon, especially with the current low interest rates and appealing offers that are popping up all over the place. While in many situations refinancing can be a wise choice, it is important to note that it is not without its own costs. Some refinance companies charge an application fee to begin the application and refinance process. This is an upfront cost that is never rolled into the new loan amount and […]
August 21st, 2008 at 00:37
[…] News » News News Beware The Hidden Costs of Refinancing2008-08-20 17:37:07Involved on refinancing … rather large sum compared to the long run. […]
August 22nd, 2008 at 20:44
[…] News » News News Beware The Hidden Costs of Refinancing2008-08-22 13:44:19Involved on refinancing … rather large sum compared to the long run. […]
August 22nd, 2008 at 21:03
[…] & Video Effects News » News News Beware The Hidden Costs of Refinancing2008-08-22 14:03:05Of Adult Acne. Acne Treatments For Teenagers. 4 Steps to eBay Affiliate Success. […]
August 23rd, 2008 at 08:52
[…] Straps & Protectors News » News News Beware The Hidden Costs of Refinancing2008-08-23 01:52:24Cases, tens of dollars - a homeowner tens of thousands of cases, it still pays […]
August 26th, 2008 at 01:43
[…] Straps & Protectors News » News News Beware The Hidden Costs of Refinancing2008-08-25 18:43:14Cases, tens of dollars - a homeowner tens of thousands of cases, it still pays […]
August 26th, 2008 at 07:36
[…] & Storage News » News News Beware The Hidden Costs of Refinancing2008-08-26 00:35:55- a rather large sum compared to the amount spent on refinancing … of cases, it […]
August 27th, 2008 at 01:51
[…] & Video Effects News » News News Beware The Hidden Costs of Refinancing2008-08-26 18:51:45Of Adult Acne. Acne Treatments For Teenagers. 4 Steps to eBay Affiliate Success. […]
August 27th, 2008 at 06:25
[…] & Protectors News » News News Beware The Hidden Costs of Refinancing2008-08-26 23:25:42- a rather large sum compared to the amount spent on refinancing … cases, it […]
August 27th, 2008 at 09:43
[…] Straps & Protectors News » News News Beware The Hidden Costs of Refinancing2008-08-27 02:43:27Cases, tens of dollars - a homeowner tens of thousands of cases, it still pays […]