I have been thinking for quite a while that I would like to refinance my home loan to get a lower rate. The only thing besides laziness that has stopped me is closing costs. Is it nieve of me to think I should not have to pay any closing cost for refinance?

I also have considered a 15yr mortgage over a 30yr.

Any advice one what I should expect realistically or should do in place of something.

3 ...

Report Post

Posted by hungryone

river parishes

Member since Sep 2010

11987 posts

Posted on 5/18/15 at 10:57 am to Kracka

You are always paying closing costs--no one is going to re-fi the loan for free. Those "no closing cost" loans are simply bundling the cost of the refi into the loan's principal (or into the rate). So instead of paying the couple grand upfront on the refi, you'll be paying interest on it for the life of the loan.

1 ...

Report Post

Posted by iknowmorethanyou

Paydirt

Member since Jul 2007

6548 posts

Posted on 5/18/15 at 11:25 am to Kracka

Couple grand up front is worth saving tens of thousands on the back end, IMO.

0 ...

Report Post

Posted by SouthOfSouth

Baton Rouge

Member since Jun 2008

43456 posts

Posted on 5/18/15 at 11:52 am to Kracka

I recently refi'd with GMFS from a 30 year to a 15 year. I got a 2.875% rate and they added the costs to my loan balance so it was 0$ cash upfront. It was very easy. All I had to do was have the appraiser come in and then sign paperwork for 15 minutes at closing. Whole thing took a month max. Will save thousands of dollars.

0 ...

Report Post

Posted by Teddy Ruxpin

Member since Oct 2006

39584 posts

Posted on 5/18/15 at 11:54 am to hungryone

quote:
You are always paying closing costs--no one is going to re-fi the loan for free. Those "no closing cost" loans are simply bundling the cost of the refi into the loan's principal (or into the rate). So instead of paying the couple grand upfront on the refi, you'll be paying interest on it for the life of the loan.

Ya, lender credits "removed" all out of pocket costs on my recent refi. The rate was lower (duh) than my previous rate and removed PMI, so I don't really give a shite if they baked it in there or not. Its as we know, immaterial as long as you are getting some savings from the maneuver. I paid $400 for the appraisal, filled the escrow account, but essentially got the $400 back when the lender credits were so high it not only covered costs, but paid down my loan approx. $400 by happenstance.

My refi immediately paid for itself, but that was just my situation.

This post was edited on 5/18/15 at 11:57 am

Page 1