New York has exceptionally high title and settlement costs, and as a result, the state has the highest mortgage closing costs in the nation. While this won’t necessarily stop you from saving money on a refinance, it can take a large chunk out of your savings account. To assist you, here are a few tips for getting a low closing cost New York mortgage refinance after bankruptcy:
Roll Your Closing Costs Into the Loan
If you absolutely have to save money upfront, you may want to consider rolling all of your closing costs into your post-bankruptcy mortgage refinance loan. This will allow you to refinance your New York mortgage with little to no out of pocket cost. Of course, there is a catch. You will eventually have to pay this money back with interest. In other words, it will cost you more in the long run to save money initially.
When shopping for a New York mortgage refinance after bankruptcy, most borrowers concentrate on comparing mortgage interest rates. While this is a good thing, you will also want to make sure that you ask about other items, such as lending fees and closing costs. These charges can significantly vary depending upon the lender you choose and can reduce the financial benefit of your refinance if you don’t get a good deal.
Negotiate to Lower Closing Costs
While lenders don’t openly advertise the fact that they are willing to waive fees or negotiate over closing costs, most of them will if you ask. Before paying estimated closing costs on your post-bankruptcy New York mortgage refinance, talk to lenders to see how low they will go. Be firm, but friendly in your negotiations.