What is important about a no cost mortgage refinance?

A no cost mortgage refinance should be a true no cost. Homeowners policy should be paid by the lender to be considered a true no cost home loan refinance.

The Break-Even of a No Cost Mortgage Purchase or Refinance
Use a ]mortgage calculator that takes as many items into account as possible. Your tax bracket and the way you pay closing costs (cash or roll them into the loan) should also be considered to provide a realistic break-even period. The break-even period for a no cost mortgage refinance will even be larger than the break-even period for a purchase transaction.

Have in mind that a zero cost mortgage is not a no cost mortgage - purchase or refinance. A zero cost or no-point mortgage transaction simply doesn't ask for paying points, but all loan-related charges - appraisal, title insurance, processing fee, closing attorney's fee - are paid by the borrower.

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no cost mortgage refinance is a mortgage in which no closing costs are paid by the borrower and all these costs are met by the lender.



therefore always evaluate option carefully.

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low cost refinance will help you get your loan refinaced with out any additional cost.

The bottom line....

There ARE costs associated with your loan. You can pay for those costs in one of three ways...

1. increase your loan amount to cover the costs
2. increase your rate to offset the costs
3. pay for the costs out of pocket at closing

If you think that someone else is going to pay for those costs AND you are going to get the lowest market rate...then you are not being realistic.