Posted on: 04th Apr, 2014 02:29 am
Is it possible to get a zero cost FHA refinance?
No and Yes
You can get a no out of pocket loan however there are costs involved
FHA requires that taxes and insurance be impounded so right off the bat there is the costs of reestablishing an account to have reserves for both of those items - then you have the appraisal - they dont work for free - and the banks costs - You can get a no out of pocket by taking a higher rate and getting a credit for the closing costs (caution a lot of banks advertise this as no cost) This stretches the closing costs out over the life of the loan. You can also add the costs to the loan amount if there is sufficient equity.
There are ways to set things up that will keep your savings intact. You just need to speak to a knowledgeable Loan Officer and have them lay out your options.
Let us know if we can help
Brian Barnes
ENG Lending
Nationwide Lender
contact info below
You can get a no out of pocket loan however there are costs involved
FHA requires that taxes and insurance be impounded so right off the bat there is the costs of reestablishing an account to have reserves for both of those items - then you have the appraisal - they dont work for free - and the banks costs - You can get a no out of pocket by taking a higher rate and getting a credit for the closing costs (caution a lot of banks advertise this as no cost) This stretches the closing costs out over the life of the loan. You can also add the costs to the loan amount if there is sufficient equity.
There are ways to set things up that will keep your savings intact. You just need to speak to a knowledgeable Loan Officer and have them lay out your options.
Let us know if we can help
Brian Barnes
ENG Lending
Nationwide Lender
contact info below