Refinance Questions - Lowest potential closing costs as % of loan balance

I’m looking into refinancing an apartment closed in 2011\. We already have a decent rate so the per month $ saved isn’t huge and our time horizon for being in the apartment is 2 to 4 years…so after talking with brokers so far and factoring in the closing costs it’s only borderline worth going through the process.  What’s the absolute lowest closing costs people have found talking with banks or brokers? So far, it’s seems largely to pencil out to 1% to 1.25% of the loan balance. I’m trying to figure out if that’s the floor or if some bank/broker (Wells Fargo, Citi, some stellar broker) can do it for less than that.  (fingers crossed their is some stellar bank that’ll do it for a couple hundred of dollars to get the interest stream). Thanks.

tylerderden1211

in Financial Services 13 years ago

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Bklnite | 13 years ago

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You can keep shopping lenders or brokers, but I don’t think anyone here is going to give you a rock bottom number as a percentage of the loan, and I don’t think anyone’s going to do it for a few hundred dollars. Assuming it’s a CEMA with no new money you’re avoiding the big expense of mortgage recording tax (which is a percentage of the loan amount). You’re going to pay (or have them roll in to the loan) the appraisal fee, tax service, underwriting fee, app fee, closing fee, title insurance, recording fee, etc., etc. If that adds up to $5000, then it’s 1% of a 500k loan balance (or 2% of 250k or .5% of $1mm) If your current rate is decent and time frame is only 2-4 years, maybe it’s not worth the hassles that lenders are putting borrowers through these days. I