As mortgage rates reach record lows all over the country, homeowners are seeking “No” or “Low Cost” home mortgage refinancing options in order to take advantage. A no cost home mortgage refinance can save a homeowner thousands of dollars if the proper one is obtained.

Typically, instead of paying the costs and fees associated with refinancing a home loan upfront, the no cost closing option will increase you interest rates by as much as 1% in order for the mortgage lender to cover their expenses and turn a slight profit. If the additional interest is to high this can be a bad decision for you to make, however if the interest rates are only slightly higher it may be the best option.

Generally, there are three different types of “No Cost” refinancing options:

-No additional points added on but the borrower is responsible for paying any third party fees.

-No mortgage lender fees but the third party costs must be paid for by the borrower.

-The most common type is no cash needed at all upfront, but the associated fees and closing costs are added on to the loans total amount, or interest rate.

The recent surge in refinance applications has made many of the predatory mortgage lenders that exist hungry for homeowners who they can take advantage of. These predatory mortgage lenders prey off the homeowners who has no idea what a “No Cost” refinance option truly is. The best thing that you can do in order to ensure you are getting the best refinancing deal possible is shop around between a few different mortgage lenders. Mortgage terms, conditions, interest rates, and closing costs can vary greatly between different lenders. Sometimes you will find that a higher closing cost can save you a lot more money every month than the no cost closing option. It is the best idea to start shopping around with your current mortgage lender. Remember to get all quotes from potential lenders written down and in paper. Typically, you have 3 days from the quote before it expires.

If you have shopped around and gotten a few mortgage quotes, make sure to return to the lenders with the lowest refinance quote you have gotten and show it to them. A lot of the time the lender will match or somehow exceed the mortgage refinancing quote you brought them. This quote also shows real dedication to getting a refinance deal on your home loan and will make the mortgage broker work that much harder.

Always make sure to have your long term financial goals in mind and never jeopardize your home to do something that may not be benefiting you in the long run. With that said though, now is a great time to refinance a home mortgage due to the low rates available everywhere. Refinance the right way and save money every single month.

-M Petrone
www.RefinancingCondo.com

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