When looking to ease the burdens of interest you are currently paying, you may want to consider refinancing your home. However, you must also recognize and be aware of all the costs associated with refinancing. When you are looking to refinance your home, you should think of it as starting from square one. This simply means that refinancing costs will be very similar to those of the original loan. All inspections, appraisals and loan applications will still need to take place. There are a variety of things that will determine the overall refinancing cost. First, take into consideration: • The amount of time you have lived in your home: This will be essential when lenders look into your past payment record, as well as your ability to stay current with your payments. Some lenders will place guidelines on how long you must live in the home before you can refinance. • The current balance on your mortgage: Generally speaking, the more you owe on your current loan, the higher your refinance costs will be. This is because of penalties, fees and interest amounts • Your home’s current market value: When determining your refinancing costs, this is a key element. Values tend to change rapidly and could possibly be much lower or much higher than the original purchase price. After going through your current loan status, you will then need to pay any costs that are associated with the initial home buying process. Some of these fees and costs include: • Fee for appraisal: $250-$600 • Fee for loan application: $75-$300 • Fees for land survey: $124-$300 • Fees for attorneys: $75-$200 • Insurance and title search: $400-$600 • Home Inspection: $175-$350 Additional costs that may be included in a refinance are: • Fines and Penalties for early payoff: A majority of mortgag companies will set up a fee for if you pay off your mortgage early. This will be your responsibility and must be taken care of before going any further in the process • Remaining Balance Costs: Since some mortgage companies will not pay off your interest amounts, you must then add it to your refinance costs. • Homeowners Insurance: If you want to add your homeowners insurance to your monthly payment, it will generally become part of your refinance cost. However, if you pay your insurance annually, then it will remain separately. When looking into refinancing, one thing to keep in mind is that the individual situation will determine the final refinancing costs. Lenders and the market will have different policies and unique fees in place. Although most people find it is well worth it to refinance, some realize they do not have the money needed for up front costs. Regardless, it is essential that you investigate all of your options thoroughly before signing any legal documents.