How to get a no-cost refinance

​We keep hearing that interest rates are very low right now. The FED recently cut rates, as of Freddie Mac’s latest survey on 11/27/19, the average rate is at 3.68% with .5% in fees and points.
 
There’s an easy way to find out if you can save yourself a few hundred dollars each month on your mortgage by refinancing without having to pay to refinance.
 
Here’s what you do:
Call up either the lender who originated your mortgage or who currently holds your mortgage. For another option, we can recommend some lenders for you if you want to use a new lender. Just contact us and request our lender list.
 
Here’s what you say:

1. Tell your bank that you’d like to refinance.
2. Ask them what the best rate in the market is.
3. Then say, “What rate can you give me for a no-cost refinance where you cover all the costs of refinancing (title fees, appraisal, underwriting, etc.).”

 
What’s the difference?
When you refinance your house, there are fees. Lots and lots of fees. Title fees. Appraisal fees. Origination fees. The list continues but you get the point. It can be expensive and it can take years of lower monthly payments to recoup this cost. If you sell before you’ve recouped that cost, you’ve lost money on the refinance.
 
If you’re not sure how long you’ll stay in your current home but want to take advantage of lower rates, a no-cost refinance can be a great option.
 
Any questions? We’re here to help. Contact us with your real estate questions and we’ll either get back to you with an answer or connect you with someone who can.

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