# Closing Costs - Did I pay too much?



## Forestdude (Jun 9, 2012)

I mentioned in an earlier post about refinancing my land for a lower fixed rate, well I did it, but Iâm not sure if I got robbed on the closing costs:hrm:

I had a 15 year balloon loan at 6.25% (11 yrs. left) which reset every 5 years. It was with my local bank that I kinda trust. I refinanced the $50,000 for a 10 year fixed rate loan at 4.25% with a farm credit bank. Sounds like a good idea, right? Well then there were the CLOSING COSTS (financed with the loan) = $2700 and I had to buy $1000 of stock with the lending bank (Iâll hopefully get a return on that at payoff). Hereâs the fees I had to pay to refinance:
Title insurance (for the lender) = $600
Settlement or closing fee = $600
Attorney/Notary fees = $600
Loan and application fees = $600
Gov. recording fees = $300
Was all this too much? Did I get ripped off - $2700 to change a loan? :hrm: I paid a total of $1200 closing costs to buy this land 4 yrs. ago. Has something changed since then?
Well, Iâm glad to be in a fixed rate loan:bouncy: (Iâm weary of interest rates rising in the future), but I am paying $20 more each month. So I guess I am satisfied, even though I think I might have paid too much on the fees. 
What do you think?


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## DenMacII (Aug 16, 2008)

Do you have the same balloon payment at the end of the loan? 

If you are going to pay $20.00 more per month and have the entire loan paid off in 10 years - with no balloon payment due at the end. I'd say you came out pretty well...

Banksters are going to collect their fees one way or another. Hopefully you do get a return on that stock you picked up too.


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## MO_cows (Aug 14, 2010)

Those are higher closing costs than what we see around here, but with the lower interest rate and taking a year off the note you will save that and more on the interest. We paid $300 for title insurance, $150 recording fees, $400 appraisal for a total of $850 closing cost on a property we bought a couple months ago. The title search is probably a lot more complicated in Louisiana, it goes back at least a couple hundred more years than this part of the country. The only fee that raised my eyebrows was the application fee, that seems like a ripoff to pay the lender to do their job and initiate the loan.


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## Belfrybat (Feb 21, 2003)

Those costs are close to double what they are around here, but I seem to remember reading that re-financing closing costs are higher than those at an initial purchase. Although I really don't understand why. However, with the lower interest and only 10 years, you will save in the long run.


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## Forestdude (Jun 9, 2012)

Thanks for the responses, that was some good information. I do think I paid over the top closing costs...but I did get a low fixed rate. After crunching the numbers, if my old loan had of stayed at 6.25% for the next 11 yrs., I'd be breaking even with either loan. The only thing I really gained was a fixed rate. So, I guess I'm pleased


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## willow_girl (Dec 7, 2002)

The $1200 in application and closing costs are pure profit for the bank. I probably would have asked them to waive one or the other. 

The $600 attorney/notary fee is questionable as well, assuming boilerplate documents were involved and no special legwork was required.

Did you shop around for a loan? I always approach at least 3 lenders and let them know the one who gives me the best deal will get my business.


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## old school (Aug 26, 2012)

Right or wrong you did what you had to do and the good part is you will own your home in less than 10 years .Always look at the big prize at the end !!!


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