No Closing Cost Refinance – No Points and No Costs
No closing cost refinance loans are one of the best ways for you to save money when you refinance your home loan. Why pay thousands of dollars in closing costs if you don’t have to? With a no cost / no points loan or a no closing cost mortgages, we pay all closing costs! You keep the $2000 – $3000 you would usually pay in closing costs as they are paid by the broker and are NOT rolled into the loan. More importantly, because there are no costs paid in your refinance of your home loan, we will continue to refinance your rate lower and lower as the market moves down with no costs! That’s right, every time rates go lower, you can lower your rate with no costs, even if rates only go down .25%!
How Do I know If a No Cost Loan Is Right For Me?
The key to no cost loans is the “break even point”. When you refinance with no costs your rate may be about .25% higher and this means that you will have a slightly higher payment, but this works to your advantage, let us show you how:
There are two components to closing costs:
1) The 3rd party closing costs (title insurance, escrow, appraisal, etc.)
2) Points you pay to buy down your rate.
No Closing Cost Refinance Analysis
The test is this: How long have you been in your last two home loans or refinance loans? If you are like most people you have not made it to the 4th year in your last two home loans and that means the best loan for you would have been a no closing cost mortgage, paying no points and no closing costs.
The most important reason not to give the bank any of your money is flexibility. If we put you in a No Cost Loan / No Points Loan and rates drop, we will refinance you into a lower rate with no costs! As the market moves downward there is no limit to the amount of times we can do this. When the market moves up, you do nothing as you are fully protected. If you pay mortgage fees or mortgage closing costs when you refinance, you must wait for much larger rates moves downward before refinancing becomes advantageous.
How can we do this?
Our brokers receive rebates from banks on the loans that they sell. This enables them to pay all mortgage refinancing closing costs and themselves without having to charge you! This means that you save the typical fees you would be paying for closing costs when you choose a no closing cost refinance. They are not rolled into the loan, our brokers pay them! Deferring the costs to the rate is one of the least used and most misunderstood tools that can be used to your advantage in the form of a no costs loan. In most scenarios, a no cost loan makes the most sense.
No closing cost loans, no cost loans, and no closing cost refinance options give you one more option when you are looking to refinance your current mortgage loan or home loan. Not only do no closing cost refinancing options enable you to save money today, they can save you money in the future if rates go down. This means that they make sense now and in the future when you are refinancing your home loan.
Wondering what your no cost loan rate and payments will be?
Get a quick rate quote now and find out how we can get you the lowest no closing cost rate quote on your no points loan, no cost loan, no points refinance, or no cost refi today! We are no cost loans, no points loans, and no cost refinancing specialists!
Facts About No Closing Cost Loans
You might have noticed that many mortgage lenders advertise a no closing cost loan option. However, have you ever wondered what this no closing cost loan is all about? To help you get a better idea about this kind of loan, here are some of the facts:
There is Nothing Free in a No Closing Cost Loan
The first and foremost misconception about a no closing cost loan is that you are going to get something for free. Remember, whenever you borrow something from anybody, that person is going to get paid. It is important to not only consider the interest rate, but also any additional commissions, transaction costs, or appraisal fees that might impact the actual rate. In the end, the only difference between a no closing cost loan and a standard loan, is that instead of paying a large lump sum up front, you pay higher interest throughout the duration of the loan.
You Will Still Have to Pay the Fees
As previously mentioned, just because a loan has “no closing cost,” doesn’t mean you don’t end up paying the fees. No closing cost loans tend to have higher interest rates, so you end-up paying a bit more over time instead of paying up front in a lump sum. The amount of fees depends heavily on the duration of the loan and thus your chances of paying more in the end increase with longer loan periods.
A No Closing Cost Loan Can Sometimes be a Good Option
A no closing cost loan can be a good choice in some cases, especially if the interest rates are high and you think they are going to decline in the near future. Also, you can also go for this type of loan if you are not going to keep the loan for a long period of time, or if you don’t have the immediate cash available to pay a large sum up front.
These are just a few basic facts about no closing cost loans in general. Fees and other specifics will vary depending on the vendor. It is important to note that you will not always get the cheapest deal with a no closing cost loan and thus you need to be sure that you know all about any closing costs and variable fees before getting involved.
