We don't want to pay a big fee for refinancing, we just want to get out from under our current bank and their poor customer service.
Answers | 3
You can choose to pay any fee/cost you want to based on the interest rate you choose ... so in many cases you can obtain a lender credit to help pay for some of your closing costs by simply taking a slightly higher rate than the option that has thousands of dollars of fees tied to it ...ask your loan officer for several rate / fee options ...if they only offer you one choice - call another company.
There are many ways to avoid paying large costs to refinance, or at least ways to structure the refi. First and foremost, know that FL is a high cost state, meaning higher title and state costs raise the cost of a refi versus many other states. That being said, it all comes down to your current loan and credit profile. If you have ideal credit/equity, "best execution" rates these days are in the 3.875%-4.0% range. You might choose to do the loan at a slightly higher rate, and get a lender credit to offset the closing costs. One of the advantages of doing this is that if/when rates drop, you can typically refinance again. The majority of my deals are structured with a lender credit of some kind. Very seldom these days do I see a borrower want to pay discount points to obtain a lower rate, most prefer the slightly higher rates with either a small, or large lender credit.
Changing servicer is probably not a great financial reason for paying to refinance. You will add years and fees to your loan. There are really four large servicers in the US and you can't control who your loan is sold to for servicing. You might end up with same company in four months