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Refinance with no closing costs?

Is there a way to know what closing costs will be or if there is way to refinance without closing costs? can I find this out before I apply and get my credit pulled? by helenheart from Jersey City, New Jersey. Jan 21st 2011 Reply


Derrick Kugler (dkugler)
#34 ranked lender in Georgia - 5 contributions

Any legitimate mortgage professional should be able to estimate your closing costs for you in about 5 minutes based on you answering a few questions for them. There are, in some cases, "no closing cost" loans, however, they will always carry a higher interest rate than you would otherwise qualify for, as the closing costs are simply built into the interest rate. There is no such thing, however, as a long with both the lowest possible rate AND no closing costs. It's always a good idea to compare 3-4 companies against each other. That way, you will have the piece of mind that you are getting a good deal.

Jan 21st 2011
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Rick Pelleriti (RickPelleriti)
#363 ranked lender in California - 59 contributions

I agree. Once your loan officer knows these 6 items:1. Your name2. Social Security #3. Property address4. Loan Amount5. Value of home6. Your incomeBy law, within 72 hours, you must receive a Good Faith Estimate which will quantify all the closing costs. This needs to be very accurate as it is a binding document.In reality, for example, I can give a client their total closing costs within a few minutes, as most of the costs are fixed, and I would be 99% accurate. Only a couple of items can vary a bit.To refinance and reduce your closing costs, you simply choose a higher interest rate that has a "rebate," or "yield spread premium," and that money is paid by the lender and goes to you.Your mortgage broker should tell you exactly what the rebate is for each interest rate, and you can then make an informed decision. Just realize that these rebates change when lenders "re-price," and that can happen multiple times in a day.If you don't get the answers you need, pick another mortgage broker.

Jan 22nd 2011
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