A processing fee is a charge by the lender for handling and processing the loan application, including reviewing the loan file, credit check, appraisal, title search, and loan closing. The fee covers the cost of the administrative work involved in originating the loan and is typically a small percentage of the loan amount.
How much is the processing fee in cash out refinance?
In a cash out refinance, the processing fee can range from 0.5% to 1% of the loan amount, but the exact amount will depend on the lender and the terms of the loan. The fee is typically added to the loan amount and repaid over the life of the loan along with the interest and principal.
It’s important to understand all the fees associated with a cash out refinance, including the processing fee, in order to make an informed decision about the loan and determine if it is the right choice for your financial situation.
This is a supplementary post to: What Is A Cash Out Refinance In Real Estate Investing?