Zero Cost Refinance

By | November 16, 2013

Zero Cost Refinance Refinancing your home loan is a great way to lower your mortgage zero cost rate, reduce your monthly payments, pay for renovations, or consolidate your debt. With the sliding interest rate, it is an appealing option to many people. For people looking to get something out of nothing, no cost refinance seemed like a prayer answered as they don’t have to pay any up-front costs. Before you jump for joy, be aware that it can be very misleading. Zero cost refinance or no closing cost refinance does not mean that you don’t pay any fees. Refinancing can incurr many fees such as processing and underwriting fees, appraisal fees, and title and escrow fees, not to mention loan origination points that have to be paid by someone. All these fees must be paid for and the bank isn’t going to absorb it for you. What they do is to bundle these fees into the loan you are taking or compensate with a higher interest rate.


The difference in the interest rate of 6.25% and 6.5% may not seem like much, but it can really add up over the lifetime of the loan. If you take a $100,000 loan to be paid over 30 years, the interest on 6.5% is equivalent to $6,000 more. In this case, it is more cost effective for you to pay the up-front cost to qualify for a zerointerest rate. Most major banks and mortgage lenders offer this type of loan. You need to shop around and compare their interest rates to avoid being overcharged for your mortgage. You can do some research on each potential lender and review customer comments on consumer websites and at the Better Business Bureau’s website.

Qualifying for home refinance is similar to qualifying for a mortgage. Lenders will be looking for stable income, a good credit history, and the “loan to value” (LTV) percentage. It is a situation where the amount of the loan is less than the value of the property. An ideal LTV is 80% or less. If you have never refinanced a home before, then you have much to learn. You may possibly read up and do some research home refinance. The internet is filled with such resources.

The chart shown below will give you the best refinance lenders for you to choose from . This information will give you an idea on what to look for when dealing with a lender and how to move forward with your refinance. If you are looking for a fast and easy process this list will help you. Each lender has a complete review from actual clients. These are some of the best known places to get a mortgage in the USA. For this reason they have the most customers and a history of excellent performance with low rates and closing costs.

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