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Is there such a thing as a "no-cost" refinance in NM?

by gwen.u77879 from Lincoln, New Mexico. Nov 30th 2015 Reply


Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 393 contributions

Hi Gwen, companies that advertise "no-cost" refinances are being a bit deceptive. What they are doing are increasing the interest rate for the life of the loan in order to create a higher lender credit that can be used to reduce closing costs, (any lender can do this), which could cost you much more in the long run. However if you don't have enough equity to wrap in closing costs and don't have money to bring to closing, this may be a sensible solution, but it would take a little analysis of the numbers to make sure. I'm a licensed Mortgage Loan Originator here in NM with 30 years experience. If you would like to look at options I would be glad to help you. Please contact me at 505-899-2800 or csparks@pcmloan.com. Thanks! (NMLS# 195031)

Nov 30th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

No.. absolutely not. and if you think about it, it makes sense.. Title companies, escrow agents, attorneys, appraisers, and even your loan officer.. none of these people work for free.. The term "no cost refi" should better read "No out of pocket costs refi".. Because all loans have closing costs, then the real question is how to pay for them.. Assuming you have sufficient equity, you can finance the costs into your new loan, you can bring cash to the table, or you can select a higher than par interest rate and have your loan officer give you a credit to pay the costs for you, but in all of these scenarios, it's you paying the costs.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Nov 30th 2015
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