What is the difference between “no-closing-cost” refinance and “no-cost” refinance?
“No-cost” refinance usually means you do not have to bring cash to the closing table. It is achieved by getting a higher loan amount to cover the pre-paid items and closing cost. You may pay closing cost with “no-cost” refinance. If you do choose to pay closing cost for the refinance, you should expect a much lower interest rate and you should plan to stay in the house for more than 3 years to recover the closing cost. We do have home owners who choose this option and it is actually more popular in the ads you get from mail or on TV. For further questions, please give us a call.
