Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

Is It Possible to Get a Mortgage Refinanced with No Closing Costs?

When it comes to refinancing a mortgage, you need to spend money to save money. Closing costs can amount to thousands of dollars, depending on the home loan. This is why the prospect of a mortgage refinance with no closing costs is so attractive.

But, is it real or a myth? Here’s the truth about zero-cost refinancing.

What “No Closing Costs” Really Means

When a mortgage refinance comes with no closing costs, consumers should be wary. That’s because there is actually no such thing as a cost-free mortgage refinance. It requires a variety of billable administrative research and work to complete:

  • Credit report fee
  • Appraisal Fees
  • Settlement or Attorney Fees
  • Title Fees
  • Recording Fees
  • Third party verification fees

The homeowner can pay these costs at closing, or the costs can be integrated into an ongoing payment plan. When a mortgage refinance has “no closing costs,” the fine print may require higher interest rates to cover what you would normally pay at closing.

Why You Pay for Closing Costs

Closing costs are part of the home purchase process. Since a mortgage refinance loan is viewed as another type of home loan by lending institutions, refinance packages require the same closing procedure.

Here are some of the most important closing costs:

  • Lender’s and Owner’s Title Insurance—Protects you from any title issues and ensures you are the official homeowner.
  • Appraisal—Confirms the value of your home and any equity gained since your initial mortgage.
  • Survey—Identifies property lines, structural changes, and geologic features of your property.
  • Insurance Reports—Conducted to determine if the home is in a flood zone, fire danger, etc.
  • Loan Origination FeesPaid for processing, lender research, and underwriting.
  • Home Inspection—Determines if any aspects of your home are in need of repair.
  • Settlement/Attorney Fees—One of the largest fees the borrower will pay.

All of these costs are necessary components of the refinancing process. Without these services, refinancing would be extremely confusing, complicated, and time consuming.

Closing Costs Can Be Regained

While closing costs may seem like a high price at the time, you can regain your losses in a reasonable amount of time by locking in a great refinancing rate. First Bank can help you find the best refinancing rate for your mortgage*, so you can save money in the long term and build equity in your home. Contact us today to discuss your mortgage refinance options.


*Loans subject to credit approval.

———
Sources:
https://localfirstbank.com/article/what-are-all-these-fees/
http://www.bankrate.com/finance/mortgages/is-no-closing-cost-mortgage-for-you.aspx
http://homeguides.sfgate.com/refinance-mortgage-closing-costs-2551.html
http://www.forbes.com/sites/moneybuilder/2012/03/28/the-no-cost-refinancing-myth/

Trending Topics

Savings Account with Competitive Interest Rates – High Point, NC

Whether you are a student looking to save for books and pizza, or an adult planning for retirement, First Bank can provide you with a savings account. Interest rates on all of our accounts can vary, but you can be sure...

Best Stress-Free Checking Accounts in Jacksonville, NC

A bank’s objective is to relieve you of the stress associated with managing your money. But sometimes, people can feel like their bank is only adding more stress by making customers jump through hoops just to keep...

Community Banks Near Me

Where can I find banks near me? When it comes to banking, customers want banks nearby that are part of the communities where they live, work and play. First Bank is rooted in a community focus that dates back to the days...

Best Bank to Open a Checking Account

Are you looking to open a checking account but are having trouble finding the right bank? You shouldn’t have to settle for a bank that doesn’t meet all of your needs. First Bank focuses on the needs of all...

Small Business Loans Made Easy – First Bank of North Carolina

North Carolina is a smart choice for any entrepreneur looking to start a business. The state encourages its residents and visitors to shop local. Organizations like Shop Local Raleigh and Got To Be NC have popped up all...

Realize Your Dream with a Competitive New Business Loan – Asheville, NC

First Bank is the lender of choice for many borrowers in Asheville, North Carolina. A new business loan can allow you to pay for startup costs such as equipment, supplies, vehicles or inventory. Businesses Loans and...

Checking Account Comparison – South Carolina

With over 75 banks located in the state of South Carolina, checking account comparison can be overwhelming. If you live in South Carolina and are looking at opening a checking account, consider stopping in...

Your Community Bank

If you live in North Carolina or South Carolina, you have a ton of banking options right outside your door. Large financial institutions may seem like your best option for banking services at first, but community banks...

How to Get a Mortgage for a Rental Property

Looking for rental property mortgage rates near you? If so, First Bank can provide you with tips and tricks on how to get a rental property mortgage, as well as how to find the best mortgage rates near you. Rental Property...

Small Business Bank – North Carolina

First Bank has become the small business bank in North Carolina for owners across the state. We were named one of the best banks in North Carolina by Forbes. We provide the diverse selection of services you expect from a...