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Profile picture for howier

Do "no out of pocket costs" mortgages really exist ?

I have been quoted a refinance mortgage with a lender credit that will equal the closing costs, including third party costs. I have > 40% equity and an excellent credit rating. Yet this sounds too good to be true... do these "no out of pocket costs" mortgages really exist ?.
  • January 03 2013 - Greenville
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Answers (4)

Profile picture for SoCal Engr
Yes, they exist. Just be sure to get all info - as larger credits also mean higher rates.
  • January 03 2013
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No out of pocket cost may also result in a higher loan balance using loan proceeds to pay for the cost of refinancing, without bringing cash to the closing. Remember larger lender credits equal higher rate's as stated SoCal.
  • January 03 2013
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List your loan amount and the term ( 30 Yr, 20 Yr, 15 Yr, 10 Yr ), then list the $$ amount of the lender credit.
  • January 03 2013
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They absolutely do depending on what state youre in. North carolina has numerous no closing cost lenders. The rate is higher than if you pay 4 k upfront but the breakeven is more than twice the average life of a loan. I would never pay costs.
  • January 13 2013
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