Mortgage Refinancing Fees

Many people end up paying too much for mortgaging refinancing because they don’t pay attention to fees lenders add to refinancing packages.

Most people only pay attention to the interest rate they get on a mortgage refinancing deal and not to the fees and the fine print. Mortgage lenders know this so they stick on fees that jack up the price of the refinancing and the future mortgage payments.

A fee of just a couple of dollars added to the refinancing on a 20 or 30 year mortgage can add several hundred dollars to the mortgage cost. This means you should pay close attention to the details of the mortgage contract because that’s where the fees are hidden.

Read the Paperwork Carefully

Read the refinancing contract over carefully several times before you sign it. When you look over the agreement watch for the words fee, charge and insurance, these can indicate added fees. If you see this words read again and see if they’re trying to stick a fee in there.

It might be a good idea to have two or three people look over the refinancing agreement. A second person might spot a hidden fee you didn’t see.

One term to look for is insurance or private mortgage insurance. Many mortgage lenders want you to get private mortgage insurance (PMI) which insures them but not you against the risk of foreclosure. It is illegal for mortgage issuers to charge you for PMI if you’ve paid off more than 20% of your mortgage. If you see private mortgage insurance required in your refinancing contract, try and get it removed because it does you no good.

Always Question Fees

Once you’ve read the refinancing contract and located any fees you should try and get them removed. If you see any sort of fee you think is unnecessary or unfair ask the mortgage lender to remove it before you sign the contract.

Always ask for an explanation of any fee or charge included in the refinancing contract. If the lender can’t explain why the fee is necessary ask them to remove it.

Be prepared to walk away from the deal if you can’t get an adequate explanation or answers to questions about fees. If the lender isn’t willing to remove the fees it’s probably time to start looking for another lender.

Be Ready to Walk Away

Be ready to walk away from the refinancing deal if the lender isn’t willing to remove fees you don’t like from the agreement. There are many lenders out there and some of them may give you a better deal with no fees.

Before you walk away tell the lender that you’ll be willing to work with them if they eliminate the fees you don’t like. Remember you are the customer and you always have the right to take your business elsewhere.

There are many mortgage refinance companies out there and some of them don’t charge unnecessary fees. Don’t get stuck paying unnecessary fees on your mortgage refinancing.