No Closing Cost Refinancing

A commonly misunderstood term is no cost refinance or no closing cost refinance. When people think of this or hear of this, they usually assume that costs or fees are waived entirely while still maintaining the low rates. This is wrong. There is no such thing as ‘no cost’ and there is certainly no such thing as ‘free’ in the business world. Everything has a payment of some sort though the manner in which you provide compensation might not be obvious at first. No cost refinancing is a sneaky way to attract customers with ‘zero-cost’ claims and then catch them with interest rates that might put them in deeper debt. In order to properly understand the implications of the term ‘no cost’, learning its definition with our refinance guide is in order.

What is No Closing Cost Refinancing?

No closing cost refinance is a transaction where you don’t have to pay upfront fees of any sort. The broker or lender will be the one to pay all the various settlement costs for the mortgage. It isn’t a new kind of refinancing option but it isn’t very well known either.

Pros and Cons of No Cost Refinance

A refinancing closing cost can often reach up to quite a lot of money, especially for upfront payments. A lot of people would probably think twice before handing over a big chunk of their cash and actually deciding if refinancing for cheap mortgages is really worth the price. [Read more]

Refinancing Guide

Refinancing basically means that you’re securing a new loan in order to pay off your previously existing loan. In this economy, refinancing is endorsed and encouraged by financial advisors of all sorts; all of them saying that this is the best time to do it. President Obama himself has remarked that everyone should take this opportunity to refinance as it might save them thousands of dollars on their mortgages.

Refinancing is a good way to rework your loan into something with a longer term and, perhaps, better rates. Indeed, mortgage rates haven’t been this good in quite some time. No doubt it is a direct result of the downtrodden economy seeking to secure investments in all sectors but most importantly in real estate. Real estate is a prime investment to hold onto. It is secure and tangible enough that most people, banks and owners alike, feel safe enough to divvy up a good portion of their investment money and put it into these holdings. Learning how to refinance is an important thing if you want to take advantage of this option. [Read more]

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