alaska home refinance rate

The fees described below are the charges that you most likely to encounter in a refinancing.

*

Application Fees: This charge imposed by your lender covers the initial costs of processing you loan request and checking your credit report. *

Title Search and Title Insurance: This charge will cover the cost of examining the public record to confirm ownership of the real estate. It also covers the cost of a policy, usually issued by a title insurance company, that insures the policy holder in a specific amount for any loss caused by discrepancies in the title to the property. Be sure to ask the company carrying the present policy if it can re-issue your policy at a re-issue rate. You could save up to 70 percent of what it would cost you for a new policy. *

Escrow Fees: The lender will usually charge you for fees paid to the company that conducts the closing for the lender. Settlements are conducted by lending institutions, title insurance companies, escrow companies, and real estate brokers. In most situations, the person conducting the settlement is providing a service to the lender. *

Loan Origination Fees and Discount Points: The origination fee is charged for the lender's work in evaluating and preparing your mortgage loan. Discount points are prepaid finance charges imposed by the lender at closing to increase the lender's yield beyond the stated interest rate on the mortgage note. They normally result in reduced interest rates. One point equals one percent of the loan amount. For example, one point on a $75,000 loan would be $750. In some cases, the points you pay can be financed by adding them to the loan amount. The total number of points a lender charges will depend on market conditions and the interest rate to be charged. *

Appraisal Fee: This fee pays for an appraisal which is a supportable and defensible estimate or opinion of the value of the property. *

Prepayment Penalty: A prepayment penalty on your present mortgage could be the greatest determent to refinancing. The practice of charging money for an early pay-off of the existing mortgage loan varies by state, type of lender, and type of loan. Prepayment penalties are forbidden on various loans including loan from federally chartered credit unions, FHA and VA loans, and some other home-purchase loans. The mortgage documents for your existing loan will state if there is a penalty for prepayment. In some loans, you may be charged interest for the full month in which your prepay your loan. *

Miscellaneous: Depending on the type of loan you have and other factors, another major expense you might face is the fee for a VA loan guarantee, FHA mortgage insurance, or private mortgage insurance. There are a few other closing costs in addition to these.

In conclusion, a homeowner should plan on paying an average of 3 to 6 percent of the outstanding principal in refinancing costs, plus any prepayment penalties and the costs of paying off any second mortgages that may exist.

Articles on refinance home loan:

• To Refinance... or Not, That Is The Question??
  
  
• Should you choose to refinance?
  
  
• Cash Out Refinance ? Home Equity Mortgage Loan
  
  
• Why Refinance - A Look at the Reasons
  
  
• Most Common Questions Asked on Refinance Applications
  
  
• What are the Costs of Refinancing
  
  
• Refinancing - Is it Worth While?