No Cost Refinance

Borrowers have many options when they choose to look into a home refinance. They have many different lenders to choose from and many different types of loans to choose from as well. No two loans are alike and mortgage loans have to be tailored to meet the borrowers specific needs. The major benefit of a no cost refinance is just that, there are no costs. What does this mean for the borrower you ask? The borrower can refinance their home or sell their home just a few months later and they have still saved money. The refinance did not cost them anything and they have achieved a lower monthly payment. There is virtually no risk involved in a no closing cost loan. Is a no closing cost loan always the right decision? No. Some borrowers are in such position that it makes sense to pay closing costs. Why? Closing costs from a mortgage refinance can be used as a tax write off. If the borrowers financial position can benefit from the tax write off then paying closing costs absolutely makes sense. They can achieve a lower interest rate by paying points on the loan and then use the costs as a tax write off. There will be much more information on this topic in future articles.

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