Cost Of Cash Out Refi?

What closing costs are expected on a cash out refi?

Thanks
Nick

Comments(5)

  • ray_higdon28th July, 2004

    Depends on the lender

  • maw28th July, 2004

    expect at least 3-5k

  • Lennyseleven28th July, 2004

    Would they be close to the costs of getting the mortgage in the first place?

  • Lennyseleven28th July, 2004

    ok, this is OT but say you could buy a house for 15k under what it would appraise for, not nesc worth spending 5k on refi. So could tell the bank you want a loan for whatever the house appraises for and then have the seller pay you back the 'change'. Has anyone done this? What guarentees you your 'change'?

    thanks
    Nick

  • AndrewKT28th July, 2004

    Quote:
    ok, this is OT but say you could buy a house for 15k under what it would appraise for, not nesc worth spending 5k on refi. So could tell the bank you want a loan for whatever the house appraises for and then have the seller pay you back the 'change'. Has anyone done this? What guarentees you your 'change'?


    Are you describing the following?
    You get purchase contract for say 85K.
    You get a loan for the appraisal value, say 100K.

    That leaves 15K minus expenses on the table. That money belongs to you. The loan was made to you. It was funded at closing by the escrow company writing a check to the seller, real estate agent, tax office, etc. Only with some non-standard contract terms would that money go anywhere else.

    (The above is my understanding of the process, and may not be exactly correct. See your escrow agent, realtor, attorney, etc.)

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