Fees and Costs for a Subprime Remortgage

If you are looking to secure a remortgage in the subprime market, you are going to have to pay some fees in order to get it done. Here are a few fees and costs that you should expect with a subprime remortgage.

Origination Fee

The origination fee is going to be charged to compensate the lender that writes the loan. This fee is one way that mortgage lenders make their money.

Appraisal

In most cases, the lender is going to require an appraisal of the property that is being refinanced. You are going to have to pay for a real estate appraiser to come to your property and do an appraisal. The average cost for this process is somewhere between $300 and $400.

Points

Sometimes, lenders will also require you to pay a certain amount of points on your mortgage. A point is equal to one percent of the total amount of the loan. This is done so that you can buy down the interest rate on the mortgage. If you want to get a lower interest rate and monthly payment, you can even offer to pay additional points beyond what is required by the lender.

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