Mortgage Closing Costs and Refinancing

Mortgage refinancing can save you a bundle of money; if you dont overpay at closing. Whenever you take out a mortgage loan you will be required to pay closing costs, and mortgage refinancing is no exception. Many homeowners dont realize that the expenses of mortgage refinancing are subject to negotiation and vary widely from one lender to the next. Here are several tips to help you avoid overpaying when mortgage refinancing.

Negotiate Lower Closing Costs When Mortgage Refinancing

Many of the charges found on your Good Faith Estimate pertaining to closing are subject to negotiation. Before you start negotiating with lenders you should comparison shop from a variety of lenders taking closing costs into consideration. You dont have to wait to apply for a mortgage to get the Good Faith Estimate; most mortgage lenders will give you one simply by asking.

What to Look for on the Good Faith Estimate

Once you have the Good Faith estimate from several mortgage lenders with promising loan offers, start by looking at the origination points. Origination points should not be higher than 1-1.5% of your loan amount for a home you intend to occupy. Anything higher is considered excessive and you will want to question the lender as to why they are charging that amount. The second fee you need to locate on the Good Faith Estimate is the loan processing fee. A reasonable amount to pay for loan processing is $400; however, this is an example of a fee you could negotiate to have your mortgage company remove. If they are unwilling to drop the fee, never pay more than $400 for loan processing when mortgage refinancing.

After you locate the loan processing fee carefully review the Good Faith Estimate for anything that resembles a courier fee, application fee, administration fee, or lock fee. These are junk fees that you should simply refuse to pay. If the lender will not remove them, there are dozens of other mortgage refinancing lenders eager for your business. You can learn more about mortgage refinancing without overpaying by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below. Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com. Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com Refi Mortgage Article Source: http://EzineArticles.com/?expert=Louie_Latour