Chapter 7

CHAPTER SEVEN

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 (PMI generally applies to loans equal to more than 80% of the property's appraised value). 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.

One way of saving on some of these costs is to check first with the lender who holds your current mortgage. The lender may be willing to waive some of them, especially if the work relating to the mortgage closing is still current. This could include the fees for the title search, surveys, inspections, and so on.

The information contained in this manual is intended to help you ask the right questions when considering a possible refinancing of your loan. It is not a replacement for professional advice. Talk with mortgage lenders, real estate agents, attorneys, and other advisors about lending practices, mortgage instruments, and your own interests before you commit to any specific loan.

Ask your lender or real estate agent for the following related pamphlets:

A Consumers Guide to Mortgage Settlement Costs

A Consumer's Guide to Mortgage Lock-Ins

Consumer Handbook on Adjustable Rate Mortgages

Reproduced by Sunny Park by permission.

This publication is designed to provide accurate and authoritative information with regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice. If legal advice or other professional assistance is required, the services of a competent professional person should be sought.

From the “Declaration of Principals” jointly adopted by a committee of the American Bar Association and a committee of Publishers and Associations.

Brad Richdale, individually or corporately, does not accept any responsibility for any liabilities resulting from the actions of any parties involved.


Chapter Six	Chapter Eight