Refinance

Refinancing

There are many reasons to refinance your current mortgage.  You may want a lower payment, shorter term or want to consolidate some debt but what ever the reason, we work to make it as effortless as possible on your part.  We offer credits for closing costs and in some cases escrows. Every situation is a little different so you need to consult with one of our licensed loan originators to see what you qualify for.

No Closing Costs vs Closing Costs

No closing costs means we pay or give a credit for all the closing costs and not putting costs into the loan.  Many people make the assumption that the closing costs are being rolled into the loan and that is not correct.  The average loan is .25% higher than what you get by paying closing cost.  The example below is a 30 year fixed mortgage with a loan balance of $200,000 and there are $4,000 in closing costs associated with this transaction.

 

                                                                        No Closing Costs

Loan Amount         Rate       Payment

200,000               4%           $ 954.83

                                                                       Closing Costs

Loan Amount         Rate       Payment

204,000               3.75%     $944.76    

 The chart below is a comparison of the principal balances for the scenario about with losing costs and no closing cost.  You can see that it takes over 10 years before the 2 balances are the same so if you don’t plan on being in the home for a long period of time then going the no closing cost route is probably the way to go.