$75 to $300

$150 to $400

$125 to $300

$300 to $600

$75 to $200

$450 to $600

$175 to $350

1% of loan

0.5%-1.0%

1% -3%

Application Fee

Appraisal Fee

Survey Costs

Hazard Insurance

Lender's Attorney's Fees

Title Search Insurance

Home Inspection Fees

Loan Origination Fees

Mortgage Insurance

Points

How to Refinance Your Mortgage and Lower Your Monthly Payments

If you are a homeowner who was lucky enough to buy when mortgage rates were low, you may have no interest in refinancing your present loan. But perhaps you bought your home when rates were higher. Or perhaps you have an adjustable-rate loan and would like to obtain different terms. If you do refinance, the process will remind you of what you went through in obtaining the original mortgage. That's because, in reality, refinancing a mortgage is simply taking out a new mortgage. You will encounter many of the same procedures-and the same types of costs-the second time around.

You don't actually save any money until you have reached your breakeven point which is as follows: Old monthly payment minus new monthly payment divided into the total cost of refinancing. The result is the number of months it will take you to reach your breakeven point.

Once you break even, your savings can be significant. Just a two interest point decrease can reduce monthly payments significantly and save thousands over the long term. To illustrate, on a $100,000 30 year mortgage, a 7% interest rate would require a $665.30 monthly payment and a 9% rate would require a $804.62 monthly payment. If you plan to stay in your house for a very long time, paying an extra $139.32 adds up. Over ten years, that means wasting an extra $16,719 that could have been invested in a retirement account.

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