What Is a Mortgage Reconveyance Fee For?
If you refinance your home with a new mortgage, you must pay a reconveyance fee at the time of closing. This fee is due even if you are refinancing with the same lender. It is your responsibility to make sure that your title company submits payment to the appropriate county agency for reconveyance purposes. A reconveyance fee is not assessed when you obtain an original, non-refinanced mortgage on a home.
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What is Mortgage Reconveyance?
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Mortgage reconveyance is the process of removing your current lender's mortgage or lien from your property. This requires removing that information as it is presently recorded from your property title. Since the process removes an original lien from a property, it is only necessary when a homeowner refinances.
Who is the Fee Paid to?
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Some counties do not require a reconveyance fee; in those that do, the fee is paid to the local county recorder's office. The county recorder details the mortgage pay-off and reports the lien removal. Usually, the county recorder reports the new mortgage or deed of trust at the time of reconveyance. Once the reconveyance is officially recorded, the information is a matter of public record.
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How Much is a Reconveyance Fee?
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Each county determines its cost for reconveyance. According to Provident Home Loans, a reconveyance fee is approximately $65. In some counties, the lender charges the homeowner with the reconveyance fee and submits it to the county recorder's office. If the lender charges the fee, he might raise the fee slightly to cover his administrative costs.
Who Pays the Fee?
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It is your responsibility to pay the reconveyance fee when you refinance your home. Some lenders allow you to roll the fee into your new mortgage loan, if you choose to do so. Reconveyance fees are not paid by your lender or title company; however, these agencies can submit the fee to the county recorder on your behalf.
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