Costs of Refinancing Your Mortgage in Plantation, Florida
Whether you want to reduce your monthly payments on a home loan, switch to a fixed-rate mortgage, adjust the term of your loan, or tap into your home’s equity, a refinance loan can be worth considering. Refinancing refers to replacing a home loan with a new one. There are a few costs associated with refinancing a home loan.
While refinancing has some benefits, you will need to brace yourself for the expenses involved in the process. We have shared the costs of refinancing your mortgage in Plantation, Florida, below. This should help you prepare for the expenses you would bear during refinancing.
· Mortgage Application Fee
This fee is paid when you apply for a new loan when refinancing a mortgage. Once Fourpath Mortgage connects you with the lender, and you decide to apply with the lender, you will be required to pay this fee to get your application processed. The mortgage application fee can be anywhere between $150 and $400.
· Appraisal Cost
Once your application is accepted, a lender will send an appraiser to determine whether your home has enough value to qualify for a new home loan. The appraisal cost in Plantation, FL, hovers around $200 to $600.
· Flood Certification
Flood certification is mandatory in some areas within Plantation, FL. You may have to pay around $200 for flood certification.
· Loan Origination Fee
Since refinancing means getting a new home loan to replace the existing one, you’ll be required to pay a loan origination fee. This fee is typically about 1 percent of the total loan value. For example, if you are refinancing a principal balance of $400,000, you will be required to pay around $4,000 in the origination fee.
· Title Search
Before you are approved for refinancing, your lender might require a title search, and this can cost up to $400.
· Title Insurance
You and your lender may be required to purchase title insurance that guarantees protection against errors or problems with the title transfer. This insurance cost is around $500 to $800.
· Recording Fee
In Plantation, FL, you might be charged a recording fee for handling the paperwork, and this can add about $50 to $200 to your total costs.
Note: Costs may vary depending on the lender and the specifics of your situation.
You should prepare yourself for paying all the costs associated with refinancing your mortgage. If you don’t have the cash to afford these costs, it doesn’t make sense to apply for refinancing. If you are planning on refinancing your home loan, then start saving money and determine an approximate amount that you will be paying towards the refinancing costs.
We have discussed all the costs associated with refinancing a home loan in Plantation, FL. If you have any questions or something is unclear, feel free to call Fourpath Mortgage at 954-507-7553. We’ll be more than happy to assist you and help you prepare for refinancing your mortgage.