nocost

Can I refinance my home with no cost to me?

Most people with home loans greater than $100,000 can now refinance without having to pay any closing costs. There are always closing costs, but they can be paid by the lender, not the borrower.

What happens is the quoted interest rate is usually raised from a quarter to three quarters of one percent, depending on your loan amount.

For example, let's say your loan amount is $150,000. Normal closing costs would be approximately $2,400 plus one point ($1,500), for a total of approximately $3,900. Let's say today's rate on a 30 year fixed rate loan is 7.25%. Now if you wanted to do this as a no points, no cost loan, your rate would go to 7.875%.

This would change your monthly payment from $1023 to $1088; an increase of $65 a month. It would take you 60 months at the lower rate to make back your closing costs (60X$65/mo.=$3,900). So if you plan on staying in your home less than 60 months, it makes sense to do a "no cost" loan and not pay that $3,900. If you feel you will stay longer, you can pay your closing costs and get the lower rate! It's your choice.

Also, when you do a no cost loan and rates drop a little more, you can always refinance again at no cost. When you elect to pay closing costs, rates need to drop a lot to make sense.

If you want to find out if we can lower your monthly payment at no cost to you or get cash out to pay bills, help you create your dream, or any reason, please click here for the ON-LINE APPLICATION.

Quantum Mortgage
17748 Skypark Circle Suite 160
Irvine, CA 92614
(800) 246-0310
www.quantummortgage.com