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Author Topic: Refinance roll fees into principal or pay upfront  (Read 978 times)

shanaling

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Refinance roll fees into principal or pay upfront
« on: February 28, 2020, 03:27:48 PM »
Which way is better?
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ncornilsen

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Re: Refinance roll fees into principal or pay upfront
« Reply #1 on: February 28, 2020, 03:48:44 PM »
Depends, can you earn more than the interest rate on other applications of that money? 

Say you have a 6% student loan... you would be better off to roll the fees in at 3.5% and use the money you would have used for closing to pay down the student loans.

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srad

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Re: Refinance roll fees into principal or pay upfront
« Reply #2 on: February 28, 2020, 04:06:45 PM »
Yep, Its all math.  Can you make more than a 3.5% return on 3-5k?  I"m guessing yes, so finance it.

FYI - on refi's, i have always rolled it in. 
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Dicey

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Re: Refinance roll fees into principal or pay upfront
« Reply #3 on: February 29, 2020, 04:11:04 PM »
More important is to make sure you're paying as little in fees as possible. Get your fees low enough and this is a moot question, which is the best answer.
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Wow, a phone plan for fifteen bucks!