There is a surge in refinance applications to take advantage of the record low rates available in the market. Refinancing would benefit applicants but would entail costs. These costs includes the following where you can generate savings from are the: 1) new title insurance, 2) application fee, 3) document preparation fee and 4) home inspection fees.

Title Insurance: This is compulsory and this may cost you more than a thousand dollars. All lenders require applicants to purchase a new policy upon refinancing since the current policy is only applicable to the existing mortgage. So upon refinancing a new insurance is needed to cover the home upon refinancing. This fee is normally about 1% of your loan amount.

·         Shop Around: What you can do is to shop around to get the best deal as there are many insurance providers competing and giving the best offers to prospective clients like you. You may be able to save hundreds of dollars.

·         Buy Direct: You can buy directly from a title insurance company. Agent fees can reach up to 70% of the cost of title insurance. A list of local independent title insurance companies can be accessed from www.homeclosing101.org. the website of industry trade group American Land Title Association

Application fee: This can be waived which means you can get this for free. Or this can be discounted or just be credited toward credited toward your closing costs. A potential savings of about $300 up can be generated.

Document-preparation fees: These are not essential and would just go the lender. Don't accept them and you’ll have a potential savings: $150 to $300.

Home inspection Fees. If this cost is passed on to you, this would cost you at least $50. You can ask your lender to look for a better deal.