A no cost refinance is where the lender pays for the borrower's closing costs. This is normally achieved by giving the borrower a bit of a higher interest rate, and the lender is willing to cover the borrower's fees in exchange for this higher mortgage rate on the loan.
However, there are advantages and disadvantages in choosing this no cost mortgage refinance option. You may want to consider a no cost option if:
- You do not have much cash to cover all the closing costs of such a transaction.
- You plan on staying in or owning your home for just a few years.
- Mortgage rates are in a declining environment.
- You want to take more advantage of the tax benefits of interest payments.
But, by having the lender cover your closing costs, you will not be getting the best mortgage rate available. Typical fees such as appraisal, title, escrow, and credit report fees are being incurred, but the new lender pays for everything in return for your business. You, however, pay nothing and will not have a single cost rolled into your new loan amount. This is a true can't-lose situation for you as a homeowner as you get the benefits of a lower rate of interest while incurring no costs to refinance. So, consider your options carefully, and do not hesitate to contact a dedicated East West loan officer today to help! Toll free 1-800-844-1015.
Note: You will have to pay for the credit report and appraisal at time of application but these funds will be refunded to you at settlement. (Certain restrictions may apply depending on loan size.)
Note: We do not pay for your prepaid, escrows, and any prepayment penalties or lender fees that you may have to pay to get out of your current mortgage.
Available in all states. Some restrictions may apply depending on loan size please, call 1-800-844-1015 for details. The No Closing Costs interest rates will be higher than those published on the rate sheet. Please, call for rate quotes.
