No Cost Mortgage Refinancing

by Ron from Red Wing, Minnesota USA

Ask Kate: No Cost Mortgage Refinancing My mortgage lender has offered me a significantly lower interest rate on a 30 year fixed rate mortgage. They say there are ABSOLUTELY NO CLOSING COSTS. What's in it for the mortgage company? Why would they do this? Thanks. Ron

Kate Answers: No Cost Mortgage Refinancing

Hi Ron, Be careful and proceed with caution. Sometimes "no closing costs" means a higher loan amount to finance fees. With true no cost mortgage refinancing, your current loan amount will not increase.

You also need to eliminate surprise by making certain your interest rate has been locked and if so under what terms and for how long.

And thirdly, ask whether the mortgage interest rate and monthly house payment is fixed for the entire 30 year term.

There are three signed documents you are entitled to receive which should answer these crucial questions:
  1. A good faith estimate

  2. A mortgage interest rate lock agreement

  3. A 30 year fixed rate mortgage disclosure If you aren't sure how to analyze these documents, perhaps you have a friend, relative or trusted adviser who can assist.

    In the meanwhile, I recommend looking over the links at the bottom of this page. They lead to other pages on my website with surprisingly simple information on refinancing. I hope you will let me know if you have more questions.

    Take a moment to bookmark No Cost Mortgage Refinancing to your favorites and visit Question and Answer - Best Mortgage Rates for Refinancing which is full of solutions based on inquiries from other Contributors just like you.

    Ron, please come back and visit often. Help me spread the word by sharing my website with your friends. Best Wishes,

    Ask Kate how to get the best mortgage rates
    Ask Kate

    Finding Help You Need for Refinancing

    Refinancing Advice - Your opportunity to get down to earth refinance nuts and bolts from a mortgage insider.

    Having trouble refinancing your mortgage due to fallen property values? Go to Special Edition Making Home Affordable Options.

    USDA Rural Home Loan Refinance with no appraisal, no credit report, and no debt-to-income calculations.

    Announcing Kate's Mortgage Information Planner - To save money, get your ducks in a row first.

    Are you a homeowner trying to decide if Mortgage Refi is worth the cost?

    How To Compare Mortgages - Yes it is enough to make anyone want to toss up their hands.

    New! Ask Kate's secret to reducing mortgage refinancing costs. Home buyers should read this too!

    Real Estate Investor Loans - Three options for investors.

    Surprise, it's a barn! Is a Certificate Of Occupancy necessary for your home mortgage refinance?

    Refinance With Cash Out - Where is my loan approval?

    Save money using My Special Refinance Formula.

    Fresh Refinance Ideas - Reasons why and why not to refinance.

    Discover my Secrets To Refinancing based on Robin's story

    Low Mortgage Payments For Home Owners - Learn how to ask questions and qualify your lender.

    Don't be distracted by refinancing lingo. 10 best kept secrets to Low Mortgage Payments.

    A collection of Ask Kate Refinancing Questions and Answers II.

    A collection of Ask Kate Refinancing Questions and Answers I.

    Return from No Cost Mortgage Refinancing to Get-Your-Best-Mortgage-Rate

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You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

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