Real Estate Law Blog : Staten Island Real Estate Lawyer » refinance staten island http://www.thenyrealestatelawblog.com by Steven T. Decker, Esq., Real Estate Attorney Wed, 17 Jun 2009 17:06:19 +0000 http://wordpress.org/?v=2.8.2 en hourly 1 REDUCING MY INTEREST RATE AND PAYING CLOSING COSTS http://www.thenyrealestatelawblog.com/reducing-my-interest-rate-and-paying-closing-costs/ http://www.thenyrealestatelawblog.com/reducing-my-interest-rate-and-paying-closing-costs/#comments Wed, 29 Apr 2009 18:56:25 +0000 Sdecker http://www.thenyrealestatelawblog.com/?p=41 If extra borrowing is not a priority and the purpose of the refinancing is merely to reduce the interest rate it may still be necessary to increase the principal balance to cover the closing costs of the refinance.  In refinancing a borrower will normally incur bank (application, appraisal), title and legal fees which can cost quite a bit.  Unless the borrower is prepared to bring a check to the closing these costs are normally rolled into the refinancing leading to a higher principal balance.  Since these costs are included in the mortgage they are paid back with interest over the term of the loan and can result in thousands of dollars of added interest costs over the term of the loan.  Get a GFE to so you can determine the fees and whether to pay them upfront or incorporate them into the principal balance of the new mortgage.

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