Profile picture for beantown41281205

Refinance rate with no closing costs

Hi,

I am looking for advice to see if a rate of 4.375% is good for a refinance with no closing costs? The home is worth about $330,000 and the refi would be for $204,000. I have excellent credit.


Thanks


  • October 15 2010 - Maynard
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Answers (9)

Just make sure it's not zero lender fees (the amount you see on Zillow quotes), but no other fees that are not prepaids(taxes, insurance, and interest).
  • October 18 2010
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Profile picture for stamp12

They may say "no closing cost" and be tacking additional fee's on to the loan amount.  Ask them what their fee's are and if there are any fee's tacked onto the loan amount.

  • October 18 2010
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That's sound like a good deal just make sure you understand what the originator means by "no closing costs".

Funds you need at closing include 3 groups and it can be debated what is a closing cost.

The first group are pre-paid items:   
Interest on the new loan from the day you close till the end of the month.
Homeowners insurance if the premium is due in the next 60 days

the 2nd Escrows (are you paying your own tax and insurance or is the bank escrowing):
This will vary based on when the last bills were paid, when the next is due and when your 1st payment will be on the new loan.

The 3rd group are What I consider Closing costs
Origination Fee
Appraisal Fee
Credit Report
Tax service
Flood Cert
title services and lenders title insurance
Recording Fees

You should have a lender credit to offset those fees and for that loan size the total in this group should be around $2,200.  You may want to ask for clarification from your loan officer what they consider to be "Closing Costs." 
  • October 15 2010
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I have been doing many loans lately at exactly 4.375% with no closing costs so it is a good deal.
  • October 15 2010
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Profile picture for beantown41281205
my credit score is around 800
  • October 15 2010
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Profile picture for daveskow

4.375% is a good rate for a no fee/ no cost loan. 

  • October 15 2010
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Profile picture for hari66
That looks wonderful. If there is really no closing costs? That is good. Make sure that is true!
  • October 15 2010
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4.375% is a good rate for a no cost loan. 

  • October 15 2010
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Do you know what your credit score looks like?
  • October 15 2010
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