Closing Cost in refinancing your Houston-Texas mortgage

Houston-Texas Mortgage Closing Cost and How it Works.

Many borrowers feel that there is something secretive/hidden about closing cost on mortgage Texas. The article will help borrowers who are looking at refinancing their Texas mortgage about closing cost and how it works.

The biggest fee that gets built in to your Texas mortgage conventional loan is the Title fee which is approximately 1.25% of your principal amount and if you have taken cash out in past its even higher. One way you can reduce this cost is by contacting the same Title Company that did your title search the last time and ask them for 40% to 50% discount on cost. They are getting repeat business and since they did your Title search the last time they have most of the paper work already with them. Less time would be involved this time

An adjustable rate mortgage will not attract higher closing and lesser if you go for fixed rate mortgage Texas.

You will see a marked shift in closing cost when you tell your mortgage expert that you want to buy the lowest possible mortgage rate paying extra fee as discount points.

Most borrowers talk about points involved on the mortgage referring to closing cost. A point means 1% of the total loan amount. So if your mortgage balance is $ 400,000 and closing cost is $ 4000. It means 1 point or 1% has been applied to your mortgage.

The reason why you would find similar cost with most banks or lenders is because the fee is pretty standard. Processing fee, underwriting fee, title fee. A processor won’t charge a higher fee if the loan amount is big or small or complicated or not complicated file. The underwriter too will charge the same fee regardless of the fact whether it takes him to approve your mortgage in 2 weeks or 6 weeks. It is not that since his man hours on a particular file is more so the underwriter would charge more. No it doesn’t work like that.

Hopefully I was able to answer and clear your doubts on fee that it’s a pretty standard format or form with all lenders or banks.

For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154. 

Artical by Roger Shanker