Q: I am paying 5% on $160,000. A lender is advertising a 30 yr FRM at 3.85%/4.191% APR, or a 15 year FRM at 3.25%/3.476%. Would closing costs be out of sight?
A: You should contact the mortgage lender and ask for a Good Faith Estimate of Closing costs (GFE). While under no obligation to provide you with one until you actually apply, they may, and that should give you a good working sense of the fees involved in your refinance. You should know that advertised rates are for truly optimal borrowers, and your situation is likely to be different.
A 25-year expert observer of the mortgage and consumer debt markets, Keith Gumbinger has been cited in thousands of articles covering a wide range of consumer finance and economic topics in outlets ranging from the Wall Street Journal to the Bottom Line newsletters. He has been a featured guest on national broadcasts for CNN, CNBC, ABC, CBS and NBC television networks and has been heard on NPR and other national and local radio programs. Keith is the primary researcher and writer for HSH.com's MarketTrends newsletter and has authored or co-authored a number of consumer guides on mortgages, home equity, refinancing and more.
