A refinance home loan with no closing costs is one in which lenders bear all charges for closing costs that may be in the form of lender’s fees, title and escrow fees, credit report fees, appraisal fees and such other expenses that might arise during the term of the loan.
Currently, interest rates offered for mortgage refinance with no closing costs are at record lows. Apart from the fact that there are no closing costs, lenders may also waive charges for loan processing and underwriting processes. Thousands of precious dollars can be saved this way and so, lure of refinancing looks attractive.Get Quick Approval
You could make the most out of getting a low rate loan for home refinance with no closing costs if you plan to keep staying in your house for a longer time. Alternatively, you may also consider obtaining a loan of this type if you intend to renovate your home. Such a prerogative will be better than getting a home equity loan or credit line.
Typically, closing costs are a combination of appraisal fees, processing charges and several other service fees. Usually, closing costs account for 2% to 5% of the total loan amount and these are required to be paid upfront by borrowers. However, while securing a low interest rate home mortgage refinance no closing costs loan, you do not have to pay these costs.
To refinance your home with no closing cost, it could be vital for you to follow the below mentioned guidelines.