No Closing Cost Loans

Can I refinance my mortgage with no closing costs?

Yes, you can refinance your home loan with "non-recurring" closing costs. Buying a house is expensive, but your expenses do not stop there: you will need to spend some money on home improvements, repairs, etc. So, it makes sense that after you have paid your mortgage loan you want to have some finances on hand that you can invest in the property.

However, you also need to pay a closing cost which usually includes: homeowners insurance and property taxes, third-party chargers for appraisals, title insurance, and escrow services, and, of course, the lenders fee. If you want to avoid paying this additional money, then a no closing cost home loan might be the right option for you.

What Are No Closing Cost Home Loans?

No closing loan will help you save some money, but you need to understand that this is not a free loan. It is essential to know how this type of loan works to make the right decision. If you do not pay the fee at the closing of the deal, then closing costs are included in the loan.

The lender will pay this money on behalf of the borrower, but in exchange for paying the fees, he will raise the mortgage interest rate. Also, you can get a no closing cost refinancing in this way. So, if you opt for a zero-closing cost mortgage, then you will have to pay a higher interest rate over the lifespan of your loan.

How Does Zero Closing Cost Mortgage Work?

Instead of paying a lump sum of money upfront, you pay a little bit extra with the interest on your loan. When you decide whether to use a no closing cost mortgage you need to do your math or contact us, so we can estimate how much extra you will pay month after month.

No closing cost home loan makes sense if you are not planning to stay in your house for more than five years. In this case, the amount you overpay each month on interest will not be higher than the money you need to pay when closing the deal. Nowadays, Californians are choosing no closing cost refinance programs.