Free No-Cost Refinance

Refinance without Paying Closing Costs

Standard refinances incur closing costs like title & escrow fees, appraisal fees, etc. A refinance will save you money monthly, but most people don’t want to come out of pocket to pay for a refinance. One way to avoid this is to have the closing costs included in your new loan amount. But there is another way to not pay to refinance!

The lender can give you a credit to cover all the costs of refinancing. This comes in the form of a lender credit. You may know you can pay to get a lower interest rate with discount points or buying down your rate, alternatively you can also take a slightly higher interest rate and get credits back from the lender. These lender credits can cover any fees/costs and avoid you bundling them into your loan amount.

Pros

• No increase in loan amount.

• No payback or break even point.

• Refinance again later with no downsides to refinancing now.

Cons

• Your new interest rate will be slightly higher than if you didn’t take the lender credit.

Why Use This Method?

Rates have started to drop, but are expected to continue to fall. Not paying for closing costs ensures you can refinance again later without regretting refinancing now. You can lock in some savings now, and then refinance again when and if rates drop lower. A mortgage professional can lay out all three ways to handle closing costs when refinancing and help you find out what option is best for you.