Can you get a re-fi without closing costs?

Question

We need to re-finance our home loan, but I want to keep it as cheap as possible. Any suggestions?

Answer 1

There are brokers and there are banks, Banks have lower closing costs but they are the only place you loan can go, a broker however can shop many places and find just what you want. Being a broker myself I could pay your closing cost for you if you dont mind paying it in yield spread premium.. ie I charge you a higher rate and therefor make money from the lender and I can cover your closing costs. The problem w/that is you end up w/a higher rate.

#1 answer is if you have great credit go to a bank, otherwise find a reasonably priced broker that is upfront about fees (like me LOL!!) and have them do it.

Good luck,
Paul

Answer 2

You won't find a loan without closing costs... the people have to make money somehow. You can usually roll those costs into the loan, so you don't have to pay for them up front.

You might check with your local credit union. They will usually have the lowest closing costs. Some credit unions act as their own lender and some act as a broker, so they will have access to many different programs.

But whatever you do, compare Good Faith Estimates. Lenders are required by law to disclose all closing costs on the GFE and what you'll want to do is compare the Annual Percentage Rate (APR). The APR is the cost of the loan, as expressed as an interest rate (it isn't the rate you'll pay for the loan). Example: 2 lenders say that their loan rate is 6% but one has an APR of 7% and the other has an APR of 9%. The one with higher APR is charging more fees. Sometimes you'll hear a lender say they have a loan rate as low as 5% but they won't tell that you end up paying over $5,000 to get that rate. So compare the APR on the Good Faith Estimates. Getting a GFE is free and any lender that tries to charge you for one should be avoided. :)

Good luck!!

Answer 3

There are always closing costs. Always always always. You can accept a higher rate to get them paid out of the yield spread, but they are what they are. I can negotiate special prices and guaranteed totals for title and escrow, but the remaining closing costs still need to get paid. Nobody does all the work involved in getting a loan through for free.

The interest rate is the cost of the money plus the bank's profit. They're not going to take out of that to pay your closing costs - unless you agree to a higher rate so that there is more profit. For the average person, this is actually smart, but most folks are obsessed with low rate and low payment, not about whether or not they'll end up ahead.

Answer 4

Yes, some broker will be willing to give you a higher rate so they can pay for all the closing costs and I mean all closing costs no gimmick....the trick is your rate is not going to be low. It's a give and take, no one gets something for nothing so you have to understand. Since you're refinancing, just have the closing costs paid thru the loan and negotiate for the cheapest rate and cheapest costs, it doesn't hurt to shop around...just don't shop around too much giving away your SS # ...you might just shop yourself out of a loan. Your credit score decreases everytime a mortgage broker/lender run your credit.

Best wishes!

Answer 5

You may see ads for no closing costs but be aware of several things. First, no one works for free. Watch for "other" costs, e.g., processing fees. Don't forget the ad is probably speaking strictly to the lender's fees and that doesn't generally, if at all, include attorney's fees, escrows for taxes and insurance, interest, etc. Further, many times, once you call about these loans, you will be informed that it's for certain loan amounts only. Just something to think about. One more thing...shop around...alot and, watch for any "junk" fees.

Answer 6

I am refinancing right now, to enable the purchasing of more real estate. I have not found a way to avoid closing costs, because my broker, the title company, the lending institution, the appraiser, and a few other regulatory people are paid out of the mortgage writing process.

One thing though...only refinance if it makes good business sense ten years from now.

Do you know the difference between good debt and bad debt?

Pardon me for asking a question within an answer!

Answer 7

dustoff is stable. there's no unfastened loan.there is often value in touch. Now you're able to finance the fee back in and that's widely used or with a no value loan as you're saying you will pay a a ways better fee of interest and with that over the term of the observe you will pay hundreds extra desirable than in case you even financed the fee in once you do the finished of funds calculation via using multiplication of the funds cases the time and you will see that the two paying up front the fee or maybe financing it back in you will in maximum case be extra effective off

Answer 8

there is no closing cost re-fi, but you can roll those cost in your new loan amount in steed of paying cash if you prefer.

Answer 9

give me a call

I have no closing cost loans available!

Andre Abajian
877-775-6265 Toll Free
5 minute quote for you.