Mortgage Refinance – What Are All Those Closing Costs?

By:Ted Belfour

Some people who decide it’s time for a mortgage refinance aren’t prepared for the closing costs associated with the loan. They think that they’ve already paid closing costs and all the other fees associated with the purchase of the house, so they’re surprised to find that many of these same costs pop up again when it’s time for a mortgage refinance. What are these costs? And which can you expect to pay again?

The amount of time that’s passed since you took out your original loan will have some impact on the cost of your mortgage refinance, but time isn’t the only factor that can make a difference. Take a look at the typical home appraisal. As a rule, a lender wants this document so that he can prove to his superiors that the property is worth at least as much as he’s agreed to loan you. Remember that banks aren’t typically in the real estate business. If you should default on the loan, the lender wants to know that he can recover at least the majority of the loan by selling off that property.

That’s why a current appraisal is often required for a mortgage refinance. Property values fluctuate and other changes impact the final dollar value an appraiser will attach to your property. You may even have made some changes that will affect the value. Have you added floor space by building on a room or even boxing in attic space for a bedroom? That can increase the value of your home. If you’ve done major renovations or even added a pool, you may have raised the value of your property and the appraisal will reflect those changes.

Remember that you’re likely going to be limited to some percentage of the value of your home – probably 80 or 90 percent. If the appraisal shows that your property is now worth more than when you bought it, you may be eligible for a larger loan or better terms.

You’ll also likely pay closing costs for taking out a mortgage refinance. The lender is charging you for rewriting the loan, going through the steps and creating the paperwork.

The lender may also run an updated credit check. This could also help you if your credit has improved over the course of your loan. You may now qualify for better rates and terms than when you took out the original loan. Some people even use that status change as a reason to seek a mortgage refinance.

Dave is the owner of http://mortgage-quotes-online.info and http://home-loan-mortgage-refinance-loan.info websites that provide information on mortgage refinancing.

Digg del.icio.us Blink Stumble Spurl Reddit Netscape Furl

Article Source: http://www.articles2k.com

Top Business Articles
1). A plus C Systems and Affirmative Insight, Inc. announced an exclusive partnership. By : Bartosz Lewandowicz Affirmative Insight Inc. provides information technology solutions in the areas of IT security, networking, service and support, e-business, web design, web hosting and software development. By partnering with A plus C Systems, Affirmative Insight, Inc. expands its offer with a comprehensive suite of software products – Uplook, Statlook and Anasil – tool kit for IT asset management and network monitoring.
2). 5 Ways To Protect Your Bond Portfolio From Rising Interest R By : David Twibell The Federal Reserve recently raised its target federal funds rate for the first time since March 2000. This could be just the tip of the iceberg, thou
3). The Thick Line Between Buddy And Boss By : Tim Knox Q: One of my key employees is giving me trouble. He has started showing up late for work and has developed a bad attitude in general. The rest of my employees are complaining since they are having to take up his slack. I've tried talking to him, but he doesn't seem to listen. To make matters worse, he has become one of my best friends since I hired him five years ago, so firing him is out of the question.
4). The Man Who Makes $1 Million in Affiliate Commissions By : David Kamau His success is phenomenal. Well, not many can claim to make $1 Million a year in affiliate marketing. And at only 27 years of age! His name is Jeremy Palmer. Until recently, he was virtually unknown in the marketing circles, simply because he preferred to make his money silently. Now this Jeremy guy has written an ebook about his affiliate marketing techniques.
5). Overcoming Obstacles By : Debbie Milam Discover how a young woman overcame serious life challenges through connecting with her inner spirit. My story begins 38 years ago in Queens
6). International Investment In Bulgaria Still Strong By : Tim Wright The strong growth in the Bulgarian economy is continuing and this is emphasised by the confidence in the market shown by companies such as GE for example. GE Commercial Finance Real Estate recently announced it will be acquiring a 50% stake of the Mall of Sofia. The Mall is an enormous trade, business and entertainment centre currently under construction in the heart of the capital city.
7). Lose Weight but don't skip breakfast By : J. Brian Keith Lose Weight but don't skip breakfast
8). Should we believe the experts? (Part III) By : Mike T. Davis Why do we use experts? To predict the future. Consider a patient who is asking a physician about the future effects of a certain drug, or the investor who is asking a stock analyst about the future prices of a certain stock, or the manager who is asking a human resource manager about the future performance of a certain candidate, or the brand manager who is asking a market researcher about the future sales of a certain new product.
9). 12 Ways To Outsell Your Competition! By : Larry Dotson The keys to outselling your competition is to compare your product to theirs. When you find the differences between products, use your fin
10). Female Golf Gifts - Golf Apparel By : J. Brian Keith Female Golf Gifts - Golf Apparel

New Business Articles
1). How Customer Call Centers Have Improved And Why They Are Crucial For Your Business By : Gregg Hall When it comes to call center support for customers, there are dual benefits seen for both the consumer and the company. There is a great need for the answering of questions or need for the necessary walkthrough in regards to a service or product that could occur at any hour of the day.
2). Xbox 360 Games: How To Get Them Incredibly Cheap By : Joaquin Reveron How to get the best xbox 360 games for the lowest prices in the market.
3). Investment in Education- Key for Software Outsourcing By : Mike Batta When it comes to software and IT outsourcing, education is a major component. Read how education in India plays a role in software outsourcing and IT outsourcing.
4). Formalizing Your Employment Agreements To Mitigate Exposure Risk By : Wade Anderson The Employment Agreement is an important document that sets out the terms and conditions agreed to between the employer and the employee. It implies that the employer shall gainfully employ the employee in a capacity as specified in the terms and conditions of the Employment Agreement.
5). How To Choose The Best Safety Boots To Protect Your Feet By : Gregg Hall There are over 100,000 work related foot injuries in the United States every year. These types of injuries are all too common and in many cases are the result if improper footwear.
6). How To Find Low Cost Items That You Can Resell For Profit By : Gregg Hall The key factor in the success or failure in a business that specializes in closeouts, liquidations, or selling products on eBay is finding items at good prices that you can make a profit on when you resell them. Contrary to popular belief it is when you buy the item that you make your profit as what you pay for something is what determines how much your end profit will eventually be.
7). Run An Employee Background Check on Potential Job Candidates By : Matthew Bass If you have even a passing interest in the topic of employee background check, then you should take a look at the following information. This enlightening article presents some of the latest news on the subject of employee background check.
8). Outsourcing - the Competition Killer By : Mike Batta If your company competes in the global economy and has not considered job outsourcing you may be in for a big suprise. Outsourcing jobs is necessary for competition.
9). Investing In Real Estate With No Money Down By : David Gass Gives strategies for investing in the real estate market without a down payment.
10). The News About Alternative Energy-Clean and Green By : Mike Batta You have probably seen many stories about alternative fuel and energy lately...this is why.