Question:

What is a no fee mortgage refinance?

Answer:

A no fee mortgage refinance is a refinance where the lender asks for higher rate to roll in mortgage refinance costs. That is, the borrower is paying closing costs on a no fee mortgage refinance by agreeing to a higher rate. In the short run, a no fee mortgage refinance is quite a deal. In the long run, it can come out very expensive.

A real no fee loan refinance will mean that there are no lender fees rolled into the loan and the borrower is only in charge of the interest between the closing date and the first date of the loan, called  "per diem interest". Transfer taxes, hazard insurance and some escrow funds can't be waived with a no fee mortgage refinance.

If rates are declining steadily, a no fee mortgage refinance is worth every once in a while reducing the lifetime of the loan. If rates are rising, a no fee refinance is a loser for those keeping it for a longer time.

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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