It’s very important to assess the cost of buying and refinancing. Fees depend on the purchase price and on the loan amount. Since total cost on a purchase depends on the city and county you are buying in, as well as what is negotiated with the seller, I will do a review of typical non-recurring closing costs on a refinance in California. This assumes I select the title company (due to my relationships and negotiated fees with them), and what is typical:

Lender/Loan Fees

Underwriting: $1000

Tax Service: $80

Flood Certificate: $20

Appraisal: $550

Credit Report: $50

Escrow/Title Fees

Escrow Fee: $400

Title Insurance (varies based on loan amount): $675

Notary Fee: $175

Endorsement Fee: $25

Recording Fee: $225

Again, these are typical closing costs associated with a refinance transaction. However, you are given multiple interest rate options – the lower the rate, the higher the cost; the higher the rate, the lower the cost. In a low-rate environment, like what we have now, it often makes sense to select a higher interest rate in which you are given a “Lender Credit”, which will then offset all the closing costs. However, this further depends on your goals for the home and how long you intend to keep the loan, since there will be a breakeven point in which case paying the costs for a lower rate may make more sense. It depends on your cash in hand and your goals for the home. Feel free to reach out to me with your specific scenario or if you would like a quote, and I can assist in the analysis of the breakeven point for all costs.