Refinance Mortgage with No Closing Costs - Smart Savings or Foolish Losses?

Posted by William Jones on September 29th, 2017

Currently low interest rates are pulling homeowners towards refinancing. If you are worried over closing costs, don’t be. Apply for easy to be approved no closing cost refinance mortgage with online service providers. If you score, you save typical closing costs of $ 4263. Not so bad. In fact, isn’t it very good?

No-Closing Cost Refinance Is

There are no out-of-pocket, upfront costs associated with the refinance process. Home owners do not have to pay thousands in closing costs for appraisal, underwriting and processing fees. They can straight away begin with their new monthly mortgage payments once they sign all their no closing cost refinance mortgage documents.

Choose a No-Closing Cost Refinance

Mortgage rates touched historic lows and even though market place is recovering, they are not moving upwards with any great enthusiasm. Homeowners are in particularly being pulled towards refinance mortgage with no closing costs as the ultimate lure of credit – no out-of-pocket costs which usually works best. Overcoming potential downside of refinancing means scoring savings of typical 63 in no closing costs. Lenders are willing to offer waivers for upfront cash pertaining to appraisal, underwriting and processing. Nothing is usually free because there’s always a hidden catch somewhere.

Extra Costs of Refinance

Waiver of closing costs may translate into higher interest rates. Instead of 3.5%, home owners end up qualifying for 3.9%. There’s one more thing to consider. Mortgage company adds all closing costs, tax and insurance escrows to mortgage balance totally a higher bill to repay. That’s not wise. You end up paying closing costs plus interest money on it too! All right if you plan to stay short term and want to really borrow as much as you can through mortgage loans with no closing costs. Long term better to make good on closing costs upfront. You qualify for lower rates and lower outstanding. Great savings on total interest money paid over entire loan term!

Sensible No-Closing Cost Refinance

People planning to live in their current home for not more than approx. five years or are likely to have another refinance down the line can take the plunge. By keeping monthly mortgage payments as low as possible in the initial months they can put off investing out-of-pocket money towards upfront charges too. They will not lose on refinance mortgage with no closing costs because they are moving out or refinancing smarter at the right time. Submitting to slightly higher interest rates still won’t make them pay more than closing costs.

The breakeven point of closing costs is usually 7-8 years. Home owners can do the math and work out if paying or not paying closing costs makes more sense for their homestay plans.

Finding No-Closing Cost Refinance

Home owners wanting to carry out some renovations to increase home value should choose no costs mortgage refinance. They can put the money saved to better use. These kind of home mortgage refinance loans usually get a better deal even on rolling refinance costs into the loan amount. They may get only slightly higher interest rates, which makes them, pay only slightly more on monthly mortgage payments. Renovating home owners usually don’t mind this unless of course rates on a home equity loan are lower.

Finding best home loans with no closing costsmeans comparing quite a few options. Filter the quotes you invite for only No points and No fees mortgage refinance. You can even inquire where you don’t see no-closing cost options. Maybe the lenders you call may be willing to offer you one.