Mortgage Refinance Closing Cost

Mortgage refinance closing cost is cost at the end of the mortgage application. When the borrower refinances a mortgage, the borrower also pays the same closing cost to start a mortgage.Some mortgage lenders offer low or no cost mortgage. It means the mortgage lenders pay for all or most of the non-recurring closing cost. Non-recurring closing cost means the borrower only pay one time. Non-recurring closing cost excludes interest, insurance, and property taxes.The closing costs may include escrow fee, underwriter, document preparation, origination fee, appraisal, administrative fee, processing fee, wire transfer, mortgage broker fee, tax service fee, and flood certification.Mortgage lenders charge a slightly higher interest rate. Then, the mortgage lenders get a mortgage rebate. Mortgage rebate is a certain percentage of the mortgage that goes to the borrower, or mortgage lenders. In return, the mortgage lenders use the mortgage rebate to pay off the closing cost. The interest rate may be 0.25%, 0.50%, or 1.00% higher than the regular mortgage.In a no closing cost mortgage refinance, there are no discount points. Discount points are upfront fee to lower the mortgage. With a regular mortgage, the borrower has the option to lower the mortgage with the purchase of discount points. Each points represents one percent of the principal.It takes time for mortgage lender to get the money back on mortgage rebate. The mortgage might take as long as 40 months to fully recover the mortgage rebate. So, the mortgage lenders are banking on the borrower to stay more than 40 months.