Lorne Harvey (lorneharvey)
#1 ranked lender in Washington - 416 contributions
Yes, closing costs are allowed to be financed into the loan on a refinance. On a purchase transaction, closing costs cannot be included in the loan amount. Often, lenders will do a lender credit to help borrowers with some of the associated costs. This can be done by paying a higher rate and getting back what is called consumer credit and is also known as premium pricing. Also a lender can give you a credit that does not come in the form of premium pricing, which comes out of the lenders bottom line.