Understanding Closing Costs on a Refi

[Jay C.]

Hi all,

I'm looking to refinance and I just want to understand the Closing Costs and Cash to Close details. The estimate of the Closing Costs and Cash to Close are wildly different in the Closing Disclosure that I'm looking at.

Questions:

1) Cash to Close was $871 in the loan estimate, but it's now $5,808 in the Closing Disclosure. The lender stated that this is due to the Total Closing Costs (J) jumping from $7,771 to $10,309.99.

When I look at the D+I it was $2,434.60 + $8,394.80.

The F. Prepaids has a property taxes of 6 mos = $1,1516.84, but the G. Initial Escrow Payment at Closing also has a Property Taxes at $432.52 per month for 12 mos (total = $5,190.24)

This doesn't seem right.

2) Is it common for the Closing Costs mount $10,309.99 to be rolled into the total loan? I wasn't looking to increase my loan.

I know there was an article or post that someone made with detailed answers on this, but I can't find it for the life of me!

Thanks

[Jonathan Styer]

@Jay C. I would strongly suggest you speak with your lender if you have any questions or are uncomfortable. If you’re working with a Realtor they should be able to help you with what is normal in your market. Best of luck!