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Closing Costs When Buying or Refinancing a Home
Refinancing Associated Costs
Interest - When you close the transaction on your refinance, there will most likely be
some outstanding interest due on the old loan. For example, if you close on August
twentieth (and you made your last payment), you will have twenty days interest due on the
old loan and ten days prepaid interest on the new loan. Your first payment on the
new loan would not be until October 1st since you have already paid all of August's
interest when you closed the refinance transaction (since interest is paid in arrears, a
September payment would have paid August's interest, which has already been paid in
closing).
Reconveyance Fee
– this fee is charged by your existing lender when they "reconvey" their
collateral interest in your property back to you through recording of a Reconveyance. This
fee can vary from $75 to $125.
Demand Fee – your
existing lender may charge a fee for calculating payoff figures. If they do, this fee may
run in the neighborhood of $60.
copyright 2006 by Terry
Light and RealEstate ABC |
