Refinance your Mortgage with no Closing CostsFunding your mortgage without acquisition costs
Using a no closing refinance you do not have to prepay thousands closing costs for things like valuation, endorsement and handling charges - the mortgage bank will dispense with them. Only because there are no upstream costs associated with refinancing does not mean it will not have you. Sometimes the mortgage bank will bill you a higher interest if you forego the acquisition costs.
So you could get an interest of 3.5 per cent if you are paying the acquisition costs, but an interest of 3.9 per cent if you are not. Otherwise, the mortgage bank will just sum up all the closing costs, taxes and deposits on your entire mortgage portfolio, giving you a larger overall mortgage bill.
When you are planning to remain in the house in the long run, it is usually a good idea to head and foot the closing costs and take the lower interest rates or the lower overall mortgage balance. Your home will be a good place to be. In the long run, you are likely to be paying more interest than you would have when closing the cost.
No Closing Costs refinancing can be useful for some individuals - generally for those who do not intend to remain in their home for more than five years or who are likely to refinance soon. The slightly higher interest that they will be paying per month in this case will usually not exceed the amount they would have spent on closure costs, provided they are selling (or refinancing) the home within about five years.
Obviously each purchaser must make his own calculation on this by ascertaining how long they want to remain in the house and what the higher mortgage interest rates would be over this time period versus what the overall closure costs would be. No closing costs refinancing can also make a lot of difference to those who need to carry out renovation work on their home but do not have the money to do it.
They can get a better deal by taking the slightly higher interest rates (or attaching to your loans net, which would also mean that you will have higher interest repayments each month) on the refinancing loans than you would on taking out a home equity loan. What's more, you can get a better loan by taking the slightly higher interest rates (or attaching to your loans net, which would also mean that you will have higher interest repayments each month) on the refinancing loans than you would on taking out a home equity loans. Be sure to screen your listing results to see only no points and no mortgage rates.
If you don't see a no-closing rate options, it's still a good idea to call the creditor to see if they can have one. Do you need help with your funding?