How can there be no closing costs?
The lender charges a slightly higher interest rate so it can absorb the upfront closing cost. The higher rate averages a half percentage point, depending on the loan amount. If you pay the closing costs instead, on average you have to stay in your home at least four to five years to come out ahead. Will credit scores affect the interest rate? FHA/VA Streamline programs do not have interest-rate adjustments (stepped increases) if your credit score is between 620 and 850. However, HARP loans do have interest-rate adjusters, which start at credit scores below 740. The lower your score the higher your rate. If your credit score is below 680, the adjusters might take the interest rate too high to justify refinancing with HARP. How is the value of a home determined? Typically with a computer-generated model, which uses recent sales that they may have access to and tax estimates for quick valuation without a full appraisal. If not enough data is available for the quick valuation, a full appra
