Cash-out Refinance...Title Closing Costs Necessary?

[Steve DellaPelle]

Hello all,

SFH Investment Property Out-of-State:

I currently have a Home Equity loan...$98,000/ 5.8%/ 20 Year

I am trying to cash-out refinance to a conventional loan...$150,000/4.875%/30 Year

Majority of the closing costs come from the below...are all of these necessary? Can someone explain further what these costs are?

[Chris Mason]

Originally posted by @Steve DellaPelle:

Hello all,

SFH Investment Property Out-of-State:

I currently have a Home Equity loan...$98,000/ 5.8%/ 20 Year

I am trying to cash-out refinance to a conventional loan...$150,000/4.875%/30 Year

Majority of the closing costs come from the below...are all of these necessary? Can someone explain further what these costs are?

 Hi Steve,

These are fees for the settlement service provider. Title/escrow/lawyer. 3rd party, not lender. You can pick the provider of these services if you wish, and the fees will be whatever the fees are with the folks you pick. Just don't pick a place which has everything outsourced to call centers in the developing world, or your refinance will go sideways five ways from Sunday - other than that your lender shouldn't really care that much who you use if you don't want to go with their default go-to.

When I present the option to select their own title company on a refi, most people have no idea what I am talking about, which is why lenders generally do not present that option.