Gayle Lyons

Refinancing your mortgage does incur closing costs. Closing costs are going to vary depending on your loan amount, your loan program, and how long you have been in your current mortgage. As a general rule of thumb, the closing costs are going to run between $3,000-$4,000.

Most likely you will skip one month's mortgage payment for you to use towards other debt, to make some home improvements, to take care or other personal expenses, or maybe to keep in savings for future use. But you also have the option to bring the equivalent of that saved payment to closing to keep your loan balance as low as possible.

Your escrow account is like a savings account that is used to pay for your taxes and insurance. The costs of the escrows are going to vary greatly. The best way to estimate your escrows is by checking your current escrow balance on your most recent mortgage statement. Please remember, that you will be getting a refund of your current escrow balance within 3-4 weeks after your refinance closing. Many of our clients will roll all of that cost into the loan and then pocket their refund for other personal expenses. While others will bring that amount to closing and wait for the escrow refund to come back.