Are these closing costs excessive for an FHA mortgage refinance?

Posted on Sep 18, 2012 in FHA Information

Question by Jennifer B: I heard that FHA will no longer approve a mortgage for a Mobile Home in Florida is this correct?

Best answer:

Answer by Stimpson J. Cat
I live in Florida (although not in a mobile home) and I haven’t heard that.

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Question by newpoint60618: Are these closing costs excessive for an FHA mortgage refinance?
OK, click are these numbers too high, clinic or am I just being overly cautious. My current loan is at 6.375% and has a balance of $ 97,5000. My mortgage company is offering me a new 30 year loan at 5.5% (or lower), but the new loan would be for $ 103K. They are telling me the closing costs are going to be around $ 3,900 with and additional $ 1800 in FHA fees. Is this right?

Best answer:

Answer by Steve D
That looks about right. Normal closing fees (not including add-ons for FHA) for the buyer/re-financer are 3 to 5% which would put you in the $ 3,00 to $ 5,000 range – right about where you are.

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5avg.rating 25 votes.


  1. Sounds about right – the fees are being folded into the new loan balance.

  2. Are you able to do an FHA Streamline Refi? Please look into that. Fees will be much lower. You do not need an appraisal, income is not verified, assets not verified. Depending on when you bought you may be eligible for a refund of your UFMIP which should show up as a credit to you on your closing statement. (And be on your GFE) You will be setting up a new escrow account but you will get your current one refunded about a month after closing. I just closed 4 of these last week & closing costs were no where near what you are talking about. Get a re-issue rate on Title Insurance. You may try to talk to another lender just to be sure you are getting a good deal.

  3. Don’t close on that.

    If you are planning to sell the property within 3 to 5 years you will be losing money if you refinance on the loan.

    Unless you are dropping one full percent or more on your mortgage loan you are not going to come out head.

    It’s a mistake.

  4. I found just what I was looking for in this article about lenders.

  5. This was a very simple explanation.