IS IT POSSIBLE TO REFINANCE WITHOUT FEES?

 

Refinancing can provide tremendous advantages, borrowers should carefully consider their financial standing to determine whether or not securing a refinance loan for lower rates is worth the potential costs. Some refinances, however, do not include the standard costs involved in closing a loan. These transactions are known as no-cost refinances and allow borrowers to forego paying upfront closing costs. 

 

WHAT IS A NO-COST REFINANCE?

 

Alternatively referred to as no-fee refinance, and no-cost mortgage, no-cost refinances are refinance transactions with minimal or no closing costs. In the process of closing a traditional refinance mortgage, borrowers are subject to fees for title search, title insurance, courier fees, and even flood settlement costs. While these typical refinance fees can amount to thousands of dollars, no-cost mortgage refinances require that the lender pays the upfront expenses without the cost of enlarging your mortgage's principal balance. 

 

EVALUATING A NO-COST REFINANCE:

 

Determining the worth of a no-cost refinance requires some evaluation of your circumstances. Generally, a no-cost refinance will greatly benefit homeowners who are planning to remain in the home for a short period of time or if you do not have the equity to cover closing costs