Question:

Can mortgage refinance fees be waived?

Answer:

Mortgage refinance fees are not waived even with a no-cost refinance; rather, they are rolled into the loan in exchange for rebates points. For example, getting a 7.25% rate on a refinance with 1.25% rebate means the refinanced settlement costs are rolled into the loan itself.

If the borrower assumes the higher rate, they may benefit if they are keeping the mortgage for the short term but in the long run this mortgage refinance proves too expensive.

With a true no-cost mortgage refinance fees will be fully waived, and the lender will take care of the loan settlement fees by charging rebates points only. Mortgage refinance fees that cannot be waived even with a true no-cost refinance are escrow, insurance and some transfer costs.

A no-cost refinance mortgage is a great loan for borrowers intending to only keep their loan for limited time. Even though mortgage refinance fees can't be waived 100%, the benefit of taking a no-cost refinance for a short time is considerable.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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