Q: I am paying 5% on $160,000. A lender is advertising a 30 yr FRM at 3.85%/4.191% APR, or a 15 year FRM at 3.25%/3.476%. Would closing costs be out of sight?
A: You should contact the mortgage lender and ask for a Good Faith Estimate of Closing costs (GFE). While under no obligation to provide you with one until you actually apply, they may, and that should give you a good working sense of the fees involved in your refinance. You should know that advertised rates are for truly optimal borrowers, and your situation is likely to be different.
More help from HSH.com
- Refinance into an Adjustable Rate Mortgage (ARM)
If you are considering a refinance, here are some great considerations to help you decide if an adjustable rate mortgage (ARM) is right for you. - What is a home equity line of credit?
A home equity line of credit is a type of second mortgage that allows homeowners to borrow money using their home as collateral. - What is a home equity loan?
Homeowners with equity in their property can take out a home equity loan that uses their home as collateral. - HSH.com’s annual outlook: 2019 Mortgage and Housing Market Forecasts
At the start of each year, HSH.com details the important factors we think are most likely to influence the mortgage and real estate markets in the coming year. Come each July, we review to see if our expectations are being met or not. - What is a rate and term refinance?
Homeowners have a variety of reasons for refinancing and each reason can indicate that one refinance option or another makes the most sense.
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