Definition
A fee charged by a lender when you replace an existing loan with a new one, often to secure better terms or rates.
What to consider
- Compare fees across lenders before refinancing your loan.
- Calculate if the long-term savings outweigh the upfront cost.
- Review all additional charges to get a clear picture.
Real world scenarios
- Before refinancing his home to secure a lower interest rate, Michael inquired about the refinancing fee to fully understand the upfront costs involved.
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