Great question. It primarily depends upon your state and the title company. Title fees are reduced for refi’s — there is no Owner’s Title Insurance, and you won’t have to pay a year’s worth of home owner’s insurance up front because you already have a policy in place. Escrows are the tricky part. The first thing to point out about escrows is that it is your money being held in escrow. The second part is that it all depends on when in the year you are refinancing. When you reestablish your escrows, whatever is currently in your escrow accounts will be refunded to you. So it will ultimately be a wash. Again, it’s your money. If you are refinancing closer to the end of the year when taxes are due, the lender may require a full year of taxes to ensure taxes are paid on time. If this happens, you will get the full amount that is in your escrows account refunded to you. In this example, you would be skipping potentially two house payments and a year’s worth of taxes will be refunded to you within 30 days of closing. If this takes place at the end of the year, that’s a pretty nice chunk of cash for Christmas shopping. 🙂
The bottom line is that since there are so many variables for each individual refi, it’s best if I work up those numbers specific to your situation. Just give me a call.