Author Topic: Closing Costs for Refi - Pay up front or roll into loan and invest?  (Read 1496 times)

cusymers

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Hello -

I am doing a cash-out refi on my home and curious if I should use cash (around $10,000) for my closing costs or if I should roll the costs into the loan and invest that $10k somewhere like Vanguard.  Difference would be around $40/month.  Does not seem like much, but over the 30 yr term it would definitely add up.  Very small loan relatively speaking, right around $100k.  Hope to pay it down quickly either way.  Any thoughts? 

Thanks in advance :)

Another Reader

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Re: Closing Costs for Refi - Pay up front or roll into loan and invest?
« Reply #1 on: August 22, 2013, 03:17:13 PM »
Yes.  The closing costs of $10,000 on a $100,000 refi loan are outrageous.  Talk to another lender or two.

Numbers Man

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Re: Closing Costs for Refi - Pay up front or roll into loan and invest?
« Reply #2 on: August 22, 2013, 03:19:16 PM »
Another Reader beat me to it. You are getting hosed for $10k. You probably would pay an appraisal fee and some junk fees as part of the Re-Fi. In total, it shouldn't be more than about $1,500.

cusymers

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Re: Closing Costs for Refi - Pay up front or roll into loan and invest?
« Reply #3 on: August 22, 2013, 03:21:01 PM »
Oh wow - that is a huge difference.  Thanks to you both.