My little forum on home equity loan
You are liable for these costs in a mortgage refinancing just as you were when you first took out the mortgage you used to purchase your home. These costs may include fees for loan application and home appraisal, title review and title insurance premium, document preparation and bank attorney fees, interest rate lock in and discount points, property tax and insurance escrow, and county clerk filing and recording fees. Regardless of whether you choose to finance these costs with your mortgage proceeds or pay them upfront, they will still take you roughly two years to recoup out of your monthly mortgage payment savings. It makes absolutely no good sense to sell your home while still recovering these costs. There are reasons other than avoiding an interest reset that homeowners consider mortgage refinancing.