What Are the costs of refinancing your Phuket property?
The fees described below are the charges that you most likely to encounter in refinancing your Phuket property.

Application Fees to the lender in Phuket
This charge imposed by your lender in Phuket covers the initial costs of processing you loan request and checking your credit report.

Phuket Property Title Search and Insurance
This charge will cover the cost of examining the public record of your Phuket propertyu to confirm ownership of your real estate property in Phuket. It also covers the cost of a policy, usually issued by a title insurance company in Phuket, that insures the policy holder in a specific amount for any loss caused by discrepancies in the title to the Phuket property. Be sure to ask the company in Phuket carrying the present policy if it can re-issue your policy at a re-issue rate. You could save up to 70 percent of what it would cost you for a new policy in Phuket.

Attorney’s Review Fees in Phuket
The bank in Phuket will usually charge you for fees paid to the lawyer or company in Phuket that conducts the closing for the lender. Settlements in Phuket are conducted by lending institutions, title insurance companies, escrow companies, real estate brokers, and attorneys for the buyer and seller in Phuket. In most situations, the lawyer in Phuket conducting the settlement is providing a service to the lender. You may want to retain your own attorney in Phuket to represent you at all stages of the transaction, including settlement.

Loan Origination Fees in Phuket
The origination fee is charged for the bank’s work in Phuket in evaluating and preparing your mortgage loan. Discount points are prepaid finance charges imposed by the lender at closing to increase the lender’s yield beyond the stated interest rate on the mortgage note. One point equals one percent of the loan amount. In some cases, the points you pay can be financed by adding them to the loan amount. The total number of points a lender in Phuket charges will depend on market conditions in Phuket and the interest rate to be charged.

Phuket Appraisal Fees
This fee pays for an appraisal which is a supportable and defensible estimate or opinion of the value of your Phuket property.

Prepayment Penalty
A prepayment penalty on your present Phuket mortgage could be the greatest determent to refinancing. The practice of charging money for an early pay-off of the existing mortgage loan varies in Phuket, type of lender, and type of loan. Prepayment penalties may be forbidden on various loans and some other home-purchase loans in Phuket. The mortgage documents for your existing loan in Phuket will state if there is a penalty for prepayment. In some loans, you may be charged interest for the full month in which you prepay your loan.

Miscellaneous
Depending on the type of loan you have with the bank in Phuket and other factors, another major expense you might face is the fee for a loan guarantee, mortgage insurance, or private mortgage insurance. There are a few other closing costs in addition to these.

In conclusion, a homeowner in Phuket should plan on paying an average of 3 to 6 percent of the outstanding principal in refinancing costs, plus any prepayment penalties and the costs of paying off any second mortgages that may exist. One way of saving on some of these costs is to check first with the bank in Phuket who holds your current mortgage. The lender may be willing to waive some of them, especially if the work relating to the mortgage closing is still current. This could include the fees for the Phuket property title search, surveys, inspections of your Phuket home, and so on.

The information contained on this webpage is intended to help you ask the right questions when considering refinancing your loan for your Phuket property. It is not a replacement for professional advice. Talk with mortgage lenders in Phuket, real estate agents in Phuket, attorneys that are specialised on properties in Phuket or other advisors about lending practices, mortgage instruments, and your own interests before you commit to any specific loan.