1) The appraisal fee – This is when you hire an expert to estimate how much your property may be worth and it is often required when the property is to be refinanced. See if refinancing is even worth your time by first getting an appraisal. There are several factors that determine the cost of this fee such as the size of the property, location, if it is a multi-unit property, if it is a rental, if it is considered luxurious and other factors.

There are even different types of appraisals. The most common is the “Uniform Residential Appraisal Report” (URAR) which is a detailed report about the property. This will be more expensive but more accurate. Another type of appraisal is the “Drive By Appraisal” which is when you ask the appraiser to drive by the property and give you a verbal estimate of the value of your home. This will be cheaper than the URAR but not as accurate or detailed.
Depending on the type, an appraisal fee may cost several hundred dollars.

2) Loan application fee – This fee is for processing the information in your loan such as your credit report, selecting an appropriate loan and lender, and other expenses. This fee is usually paid upfront to separate the serious buyers from the looky-loos and generally non-refundable even if the lender decides to not offer credit to the borrower. Usually the fee will be a couple hundred dollars. However, due to the highly competitive market, some businesses will waive this fee or offer it at a low rate.

3) Title Search and Title Insurance fee – A title search is a detailed look at the public records of a property to confirm who legally owns it and what claims are on the property. This is to ensure that the person refinancing is the legal owner and that there are no liens, or other judgments on the property. A title search should weed out undesirable legal litigation.

However, a Title Search is not perfect. A Title Insurance fee protects your from these judgments. If someone makes a claim against your property then the insurance will pay for your legal defense and other legal fees.