Home refinance: Costs to consider
Refinancing your home can have major benefits: a lower monthly payment, cash use of home equity for a variety of purposes, generate more appetizing mortgage terms, etc. However, there are a few things to remember when entering into a mortgage refinance, like refinance cost.
Here are a couple of cost options to remember when you’re ready to refinance your home:
Traditional closing costs
The biggest group of refinancing costs that you should be aware of is the closing costs. While you may not have to pay the same closing costs you did when you first purchased the house, there’s a good chance you’ll need to pay at least 2% of the remaining mortgage loan, but typically no more than 5%.
Average closing costs may include your loan application fee, private mortgage insurance, escrow fees, credit checks, attorney fees and any other property-related payments. However, these fees are based on the individual loan provider
No-closing-cost refinancing
Some refinance programs don’t require you to pay closing costs. No-closing-cost refinance options are often considered if the closing costs on your new loan don’t quite fit into the budget. The costs are typically added in with your new loan principal and may come up as higher interest rates, larger monthly payments or an extension of the loan term.
Refinance closing costs are typically part of the refinancing game, which may cause some homeowners to turn away from refinancing. However, the benefits of refinancing may outweigh the costs, and with a plethora of options available for a variety of financial situations, there’s a good chance you’ll find the right mortgage refinancing program for your circumstance.
If you need an extra bout of insight but don’t know where to start, try your real estate agent and the network of loan and finance professionals they may have at their disposal.
About the Author
Daniel Martin, Higgins Group Private Brokerage, Licensed in CT, Lic. #RES.6767971
With over two decades of experience in Connecticut real estate, Daniel Martin is a seasoned Realtor at Higgins Group Private Brokerage, renowned for his exceptional market insight and unwavering client dedication. A lifelong Connecticut resident, Daniel's deep roots in the community, coupled with his extensive professional background, provide an invaluable advantage to both buyers and sellers across Fairfield and New Haven Counties.
Daniel's distinguished career is marked by consistent achievement, earning him the prestigious Connecticut Magazine 5 Star Realtor award from 2014 to 2025. He is a perennial Top Producer, recognized as both a Top Listing Agent and Top Selling Agent, a testament to his strategic approach and keen understanding of market dynamics. His expertise spans a broad spectrum of real estate needs, including guiding First Time Home Buyers, navigating transactions for Single and Multi-Family Homes, Land, New Construction, New Residential Developments, Condominiums, Downsizing, and Rentals.
Beyond his impressive track record, Daniel's professional affiliations include memberships with the National Association of REALTORS (NAR), Connecticut Association of REALTORS (CAR), Bridgeport Board of Realtors, Smartmls and Greenwich MLS. His foundational education in real estate from Naugatuck Valley Community College, complemented by studies at Connecticut School of Electronics and Housatonic Community College, underpins his comprehensive understanding of the industry.
Daniel's unique blend of customer service acumen and technological proficiency sets him apart. He leverages every available marketing resource to ensure his clients' homes gain maximum exposure and stand out in the competitive market.
When not orchestrating successful real estate ventures, Daniel cherishes time with his family, including his wife, two children, and four grandchildren. A passionate musician and golf enthusiast, he embodies the vibrant spirit of the Connecticut communities he serves. Daniel's network extends globally, allowing him to facilitate referrals anywhere in the world.
