Let’s face it; everyone loves to save money – and refinancing your mortgage is one of the simplest ways to do so. But to save big, you usually have to pay big out-of-pocket in the form of refinance closing costs. A No-Closing Cost Refinance can help you avoid upfront fees.
Why No-Closing Cost Refinance?
How does No-Closing Cost Refinance work?
The first thing you have to understand is that this refinance option isn’t actually “no cost.” Well, it’s true to some extent because you don’t pay any upfront fees.
But please bear in mind that No-Closing Costs Refinance will likely get you higher interest fees than other refinance options.
When does it make sense, then?
For example, no-cost refinance might just be right for you if you’re hoping to move up to another house in less than 5 years. The higher rates you would pay probably wouldn’t end up exceeding the amount you would’ve otherwise paid in closing cost fees.
Did You Know?
You can use the money you save by going with this option to increase the value of your home.
Closing costs can be anywhere from $2800 and $4000 depending on your lender. To be honest, we can understand that to pay that amount only for getting a new mortgage might seem a bit much for some.
Now, this is the part where No-Cost Refinance comes into the picture.
You’re a first-time home buyer and looking to settle down for longer periods of time.
You’re seeking the predictability of fixed payments.
You’re looking for a loan that lets you set your household budget.
You have adequate credit. Otherwise, an Adjustable Rate Mortgage might suit your needs better since its initial interest rates are usually lower.
If you’re thinking about refinancing your current mortgage, our experts are more than willing to help you.
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