While no cost refinancing options do exist from certain mortgage lenders, keep in mind that all lenders and banks are in the business of making money. If there is no profit to make from closing costs and other fees, you can count on something being added on to your interest rate, or the fees were in fact included in the loans total.

Mortgage lenders and banks who offer truly no cost mortgage refinancing are very hard to find. Always be sure to read all fine print in contracts, and compare different mortgage lenders. Try to get a GFE (Good Faith Estimate). Also, ask if the lender can guarantee the GFE. While guaranteeing an interest rate, terms, or conditions of a loan is not required, a lender who wants to work with you will give you one.

Here are some other Mortgage Refinance Costs:

-Loan Origination Fees.
-Processing Fees
-Administration Costs
-Application Fees
-Inspections Fees
-Appraisal Fees
-Escrow Fees
-Credit Report
-Loan Tie In Fees
-Tax Services
-Recording Services

Also, a lot of mortgage lenders charge homeowners extra, add on interest rates and fees, which can often be negotiated down. These are a bonus if the lender can pull them over on you, and will net them extra profits. If you ask about them, they can often be removed.

Another mortgage refinance cost you may have noticed is also called a “Yield Spread Premium”. This is money which is given to the mortgage lender by the bank for connecting you with the banks services. Worth remembering is that the YSP could have been a savings for you if it would have not been there, and only profits the mortgage broker.

-M Petrone

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