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Posted on June 23, 2009 by Joy Stoyle | Posted under Finance
No Fee Refinance - Weighing your Options
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What are the normal fees associated with refinancing a home mortgage that you wouldn't have to pay with a no fee refinance? The lender will have to do a title search on the home to make sure that there are no liens on it, and this costs some money. Also, your home will need to be appraised. Even if you are only asking for a loan equaling the amount of the principle that you have already paid into the home, there's still a chance that your home value may have decreased. This can happen in a deflated housing market. These are just two of the fees you would be avoiding with a no fee refinance. There are also lender and broker fees and credit report fees associated with refinancing, so it may sound like a great idea to get a no fee refinance. Before you decide for certain, however, you should know that you are going to pay for these fees one way or the other. When a lender agrees to a refinance with no fees, this usually means that they are going to charge you a higher interest rate. This is discussed with you at the beginning so that you will be able to make an informed decision. You will have to figure out what it will cost you in the long run if you go with a no fee refinance. It could be worth it to you. One thing that you can do is discuss it with an accountant. The lender may be biased toward giving you the type of loan that would make more money for them, so it is good to talk to someone who is objective. As long as you feel that you have gotten the best advice possible and feel well informed, you can most likely make the refinance decision that is right for you. About The Author: |
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