Right. But the borrower gets to choose ("you may be given the choice"), and, at least if you don't mind refing repeatedly, one should always choose the higher rate, with no fees. Here's a post explaining how lender credits work--they are the opposite of paying points to reduce the rate.The Investopedia article says: If your lender offers no-closing-cost refinancing, you may be given the choice of paying a higher interest rate or having the closing costs rolled into the new loanYup. I've done three--taking 1/8 or 1/4% higher rate, not rolling fees into principal--and would never do any other kind. Hope we see those days again.There out there. Read back on this tread and you will see examples of no fee refinancing.I've never seen a fee-free refinance.
As soon as you can find mortgage lower than 7.15% with no fees for refinancing.
Here's an explainer from Investopedia. Insaner, Owning.com, one of the online shops mentioned on this thread, advertises that it is under 6% APR now. The point of a no-fee refi is that you don't have to wonder if rates are going to drop further. If you can save a half, a quarter, or an eighth now, just do it, and if rates go down more, refi again. Avoids timing the market.
They don't work for free.
Statistics: Posted by Minty — Thu Aug 15, 2024 4:15 pm — Replies 12875 — Views 1337290