The title policy in Texas is about 1% of the mortgage amount. The broker wants to make 1-2K. Other escrow fees, courier fees and doc prep can run $400+. At a 70% LTV you’ll probably be paying up to the 9% range. About 1% more for an 80% loan.
I think you are finding out the problems of buy and refi. Yes, you can cut the cost of the broker some and find a less expensive closing agent. Washington Mutual has some decent refi programs.
Let’s get together sometime this month and discuss philosophy of this and other approaches.
Refinancing: Closing Costs? - Posted by Greg in Dallas
Posted by Greg in Dallas on December 25, 2000 at 21:52:47:
Gang,
I’m getting ready to refi some properties. I need to know what the industry is charging for closing costs? (3% of loan, 5% of loan, etc?) I’ve been shown some numbers on a good faith estimate and it looks like to do a refi for a property that appraises for $60K they’re gonna stick me for $4K in closing costs. Since I owe $35K on the property and may only be able to pull out 70-80% of the appraised value that leaves me at a cash-out of anywhere from $42K-$48K. Then after paying off the old loan of $35k I’m left with $7-$13k less closing costs of $4k. Is this appropriate, or should I shop around.
Your help is greatly appreciated!!
It’s not far off, especially if it includes EVERYTHING and that would be setting up your new excrow account with the new lender, unless you are opting out of the escrow, which costs .25% of the loan amount, although many lenders don’t tell you this up front.