Refinancing a home mortgage is fairly common, and can make the fees and costs a little easier to understand. In fact, those searching for options typically know about the upfront closing costs, loan origination fees and other fees and costs to be paid to the new mortgage lender. But did you know there’s a way to not pay those closing costs upfront?
Thanks to no-closing-cost refinance options, homeowners can roll those costs into their new home mortgage and pay those fees and costs over time instead of all at once.
Here are a few key basics for those interested in no-closing-cost refinancing:
Homeowners refinance their mortgages for a variety of reasons. Among those reasons are adjusted monthly payments and borrowing against their home equity.
While these options are widely available for traditional cost refinancing, those hoping to receive these benefits without paying substantial closing costs in a lump sum should consider refinancing without closing costs.
No-closing-cost refinancing is especially great for those who may need extra cash to cover an emergency expense, since there’s no requirement for upfront payment of the overall closing costs.
Typically, the fees and costs are wrapped into the new monthly payment. This can be observed in numerous ways such as a higher monthly payment than traditional refinancing, a higher interest rate or a longer loan term.
No-closing-cost refinancing still requires the fees to be paid, but you don’t have to have the money to pay them all at once, making them a feasible option for those with financial limitations or surprise expenses.
Understanding your situation is key to making the right choice for your home and mortgage payments. For example, think about whether this is your permanent home or if you plan to sell later, as this can directly affect whether no-closing-cost mortgage refinancing will cost you more over time.
While no-closing-cost refinancing seems like the optimal answer for a variety of reasons, it’s still essential to do a deep dive into your goals and needs. If you have questions about lender fees, origination fees or any other part of the refinancing process, contact your mortgage lender.
If you’re not sure where to start, try your real estate agent. They may know a loan officer or mortgage broker that can help you on your refinancing journey.
I grew up in a small town in Wyoming and married my high school sweetheart. I purchased my first home when I was 18 and immediately found a passion for real estate. One year later, I passed the Wyoming Real Estate Exam, and successfully purchased my second property! I love to help people navigate the real estate process and connect with my customers to help them achieve their real estate goals! With more than 25 years of experience in the industry – including residential, commercial, timeshare sales, and property management: I thrive on new opportunities to assist Buyers and Sellers. When not listing a property or negotiating an offer, you may find me on the beach enjoying some "Salt Life", volunteering at my child's school, and helping out in the community. Finally, I am proud to sit on the board of directors of a dedicated 501c3 foundation & help veterans, active service members, & first responders find relief from PTSD through scuba diving.
