Are there any refi's done without fees?

I hear ads all of the time for no-cost refinancing, but every time I call one of these companies, there are costs involved!

Asked by John

3 Answers

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Answered by Chad Freeman, Branch ManagerPRO+ in Bethesda, MD
Hi John:

Yes there are definitely "no-cost" refinances. You will ALWAYS see fees but the key point is whether or not those fees are simply being "rolled into" the new loan amount, or if you are receiving a true lender credit for the costs. Feel free to contact me if you'd like to discuss further. | 02.04.14 @ 22:15
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:14
C
Answered by Caroline
a. You could increase loan amount and pay the costs if you have equity and can qualify or b. bump the rate upwards to get rebate pricing to cover | 12.30.14 @ 22:02
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:14
Answered by Ted Rood, Mortgage BrokerPRO+ in Maryland Heights, MO
Chad is correct, it's imperative to define what your lender means by "no closing costs". If it does mean a lender credit to cover them all (which I, and others, often do), your loan size won't go up, or perhaps only by the amount of the new escrow account. Many lenders call loans "no closing cost loans" simply because the costs are ADDED to the new loan, rather than actually paid by the borrower at closing. This is unethical and underhanded, but I've seen it far too often.

When I do "no closing cost loans", the costs ARE disclosed to my borrowers (as required by federal law), but are then offset by the lender credit. Yes, the rate on these may be 1/8th or 1/4% higher than "borrower paid closing cost" loans, but in many cases, it makes more sense to not add to the loan balance, especially if the monthly payment is marginally less, compared with the amount of the credit. Most questions? Let me know, I write loans nationally. Hope that helps, | 02.06.15 @ 05:33
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:14
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