Am I getting taken advantage of refinance closing costs

[Joshua Taffe]

I have 400,000 in equity in a deal... I am trying to do a cash out refinance for 160,000 the mortgage bank I am working with is giving me the 160,000 but out of that I am walking out with 75k... 40k towards debt... And closing costs are 36k... My rate is going from 4.62% to 5.375%. This is the problem I'm having with deals the closing costs I feel are out of this world. Roughly 8% of my loan amount. I owe roughly 280,000 but my appraisal came back 650,000. Any advice with what I have going on here.

[Mohammed Rahman]

Hey @Joshua Taffe - 8% closing costs does seem pretty steep. In my experience closing costs are roughly 2-4%; unless your bank has any reason for the higher closing costs that they've disclosed to you? Fees, processing, etc. 

You should also pushback to your bank and encourage them to lower closing costs amount, banks are able to do that. The volume of refinance loans in the market has dropped significantly since last year and banks are more willing to have a discussion about making concessions if needed to get a deal done.