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.
Terese Ferrara is a long-time resident of the Bay Area and has been a partner with The Goss Real Estate Group for many years. She and her husband raised their two daughters in San Jose, where she successfully continues to build her real estate career.
After earning a bachelor’s degree from San Jose State University, she went on to teach in the San Jose Unified School District for 9 years. Transitioning to real estate was a logical choice, utilizing her patient demeanor to educate all levels of buyers and sellers. Knowledge and experience demonstrate her vested interest in delivering the highest level of care and professionalism to every client. She consistently strives to exceed her client’s expectations throughout the entire real estate transaction and remains a trusted advisor long after each close.
As a board member on KW Bay Area Estates’ Associate Leadership Council (ALC), she aids in support of culture and professional development strategies for over 180 associates. Terese is also a Director for the Santa Clara County Association of Realtors Foundation, which supports community service initiatives in Silicon Valley.
Terese is the consummate real estate professional dedicated to providing unparalleled service to her clients through ongoing training and education, keeping her on top of the dynamic market and latest real estate trends. Her high-touch approach coupled with honesty and integrity support her commitment to her client’s real estate needs.
