Who is paying the actual cost related to the refinance?
Compared to the conventional refinance with closing cost, you take a relatively higher interest rate so the lender will cover all closing costs which include intangible tax, appraisal fee, attorney fee, our commission, etc. You certainly can take the lower interest rate and pay the upfront closing cost, which is roughly ($2650 + 0.5% * Loan Amount). Compared to no-closing-cost refinance, it takes about 3 to 4 years to recover the closing cost. In other words, if you plan to stay in the house for more than 3 years, paying the closing cost for a lower rate is not a bad idea at all. Please discuss that option with us if you are interested in it.
