With rates hovering around all time lows, many Ohio homeowners are considering a mortgage refinance. The most obvious reason is to lower your payment and your interest rate. Other reasons may include, shortening the term, removing a borrower from the current note, improving cash flow, going from an adjustible to a fixed rate mortgage, or to make home improvements. Whatever the reason, right now is a good time to reduce your interest rate, improve the terms of your loan, and provide you with peace of mind. For most homeowners there has never been a better time.
What is your primary goal? If it is to reduce interest expense and build equity faster, converting from a 30 year term to a 15 might have a higher payment, but can end up saving tens of thousands, or even hundreds of thousands of dollars, over the life of the loan.
If a lifestyle change, such as a loss of employment, or reduction in income occurs, extending the term and improving cash-flow would possibly be a financial live saver. For those in an adjustable rate mortgage, converting to a fixed rate may offer peace of mind, and gain stability with a more definite future.For those wishing to consolidate debt, combining debts into a single cash-out refinance refinance may improve household cash flow significantly.
The single most important question when considering a refinance, is this: How long do you plan on keeping the loan? You will want to do a break-even analysis to determine the best pricing. If you intend to move in the next few years, you will consider an ARM, or a no closing cost refinance.
Factors which can affect your mortgage rates and fees
Ohio refinance closing costs
Mortgage closing costs consist of lender fees, upfront mortgage insurance premiums (FHA), appraisal, credit report, title fees and filing fees.
Lender fees can include underwriting, loan origination, discount point(s), processing, tax certification, flood certification, wire fees and funding fees. This is not an exhaustive list of all lender fees. Some lenders may bundle them all into one charge, some lenders may have more fees and call them different things. When it comes to comparisons it is best to look at the bottom line. Mortgage brokers, mortgage bankers, and banks all have different sets of fees.
Appraisal fees are paid to an appraiser, or an appraisal management company (who in turn keeps a portion of the fee, while the appraiser gets the balance). An appraisal on a residential appraisal will vary from $300 to $750. Higher fees are charged on multi-family (2-4 unit) properties, investment properties, and jumbo loans (loans in excess of 417k).
Credit report fees typically vary from $10- $25. Credit companies can charge for extra services including, trade line updates and rapid rescoring.
Title fees vary significantly depending whether the loan is for a purchase or a refinance. The different title fees include escrow / settlement, closing fees, notary fees, title search, title exam, title binder, owners title insurance, lenders title insurance, endorsements, closing protection coverage, deed prep, doc prep, wire fees, and notary fees.
Filing fees will depend upon specific local and state government schedules. In Ohio you will be limited to county deed and mortgage filing. Filing fees in Ohio are typically between $125 and $225. The cost varies based upon the number of pages in your mortgage document.
Under most circumstances, most of the above associated fees can be paid by my company in exchange for a higher rate. For more information on no closing cost loans, please click on the link below.
Getting a mortgage with no closing costs
Mortgage refinance programs for borrowers with little or no equity
