https://boards.hellobee.com/ Pregnancy, Baby and Parenting blog, by Hellobee en Thu, 30 Apr 2026 01:44:19 +0000 https://boards.hellobee.com/topic/mortgage-refinance-no-fee-vs-paying-closing-costs#post-2732129 Wed, 03 May 2017 22:35:24 +0000 Anagram 2732129@https://boards.hellobee.com/ <p>@yoursilverlining: @sunny: Gotcha. That's what we were finding. That if you don't pay closing costs, you have a higher interest rate. So again, I guess we just need to compare offers and run numbers and see what works in our favor--high interest rate but no cash closing costs. Or pay cash for closing and have a lower interest rate. And then decide how aggressively we want to try to pay it off. </p> https://boards.hellobee.com/topic/mortgage-refinance-no-fee-vs-paying-closing-costs#post-2731950 Wed, 03 May 2017 15:29:01 +0000 yoursilverlining 2731950@https://boards.hellobee.com/ <p>Agree with what @sunny said. I think you have to be careful about the phrase “no closing costs” – both in assumptions about what that means and in how people use that term. I think what “no closing costs” means for a lot of people is no cash out of pocket the day of the refi - - they still pay closing costs, but those costs are wrapped up into the loan. </p> <p>You can also explicitly negotiate some closing costs. Some closing costs you cannot negotiate and are included in every loan. Some lenders offer special deals on closing cost costs- - for example, a mortgage lender near my work offers $600 closing cost credit to employees of my company. I would imagine that lenders might be more willing to start waiving or negotiating closing costs depending on how much $$ they will make on your loan. A super low interest loan that’s likely to be paid off in 5-6 years doesn’t seem like something a lender would make a lot of money on so I don’t know if that might impact the “deal” you’re offered. </p> https://boards.hellobee.com/topic/mortgage-refinance-no-fee-vs-paying-closing-costs#post-2731948 Wed, 03 May 2017 15:26:37 +0000 Truth Bombs 2731948@https://boards.hellobee.com/ <p>Agree with @sunny: There may not be upfront closing costs, but they still exist, they are just built in to the loan. If you feel confident you can pay the mortgage off in 5-6 year I would stick with your current mortgage. However, if that's only a possibility, I would begin looking at a fixed rate. If the stock market continues to perform this well, the Fed will continue to raise interest rates and it's likely it will be quite some time before we see such good fixed rate options again. </p> https://boards.hellobee.com/topic/mortgage-refinance-no-fee-vs-paying-closing-costs#post-2731928 Wed, 03 May 2017 14:59:31 +0000 sunny 2731928@https://boards.hellobee.com/ <p>My understanding is that there are ALWAYS closing costs to every loan. There's appraisal, title insurance, origination fee, etc. However, it may be no OUT OF POCKET cost because the closing costs are built into the interest rate you're paying. Therefore, you may not need to bring a check to closing. </p> <p>I've refinanced twice with "no cost refis". Both times, I opted for the higher interest rate vs. paying the $1000-3000 closing cost out of pocket. </p> <p><a href="http://www.bankrate.com/finance/mortgages/is-no-closing-cost-mortgage-for-you.aspx" rel="nofollow">http://www.bankrate.com/finance/mortgages/is-no-closing-cost-mortgage-for-you.aspx</a> </p> https://boards.hellobee.com/topic/mortgage-refinance-no-fee-vs-paying-closing-costs#post-2731911 Wed, 03 May 2017 14:27:55 +0000 FaithFertility 2731911@https://boards.hellobee.com/ <p>Same is Winniebee </p> https://boards.hellobee.com/topic/mortgage-refinance-no-fee-vs-paying-closing-costs#post-2731907 Wed, 03 May 2017 14:23:08 +0000 winniebee 2731907@https://boards.hellobee.com/ <p>We went through a mortgage broker and did no points no closing costs. We paid appraisal fee but that was it. </p> https://boards.hellobee.com/topic/mortgage-refinance-no-fee-vs-paying-closing-costs#post-2731905 Wed, 03 May 2017 14:18:08 +0000 T.H.O.U. 2731905@https://boards.hellobee.com/ <p>Hmmm yea I haven't heard any no-closing cost offers. But for our mortgage we did go through Costco to get some quotes and most of those are little to no bank fees (under writing fees). So maybe thats what they mean? </p> https://boards.hellobee.com/topic/mortgage-refinance-no-fee-vs-paying-closing-costs#post-2731873 Wed, 03 May 2017 13:26:23 +0000 Anagram 2731873@https://boards.hellobee.com/ <p>I know a lot of people here have refinanced in the last few years. We are thinking about refinancing. We originally had a 5 year ARM with an interest rate of 2.4, so obviously we won't be able to beat that. We've calculated the interest rate hikes when the 5 year period is over (we're on year 4), and since there's a cap on yearly rate hikes, it will be another couple of years before we even catch up to current market rates that are hovering around 3.8 for a standard mortgage.</p> <p>So we're running numbers about which options are more beneficial to us longer term. I saw some people here recently posted about no-closing cost refinance. We haven't found any banks willing to do that--are interest rates higher if you don't pay closing cost? Do you have to go through some kind of special program to refinance without paying closing costs?</p> <p>We think we can have our place totally paid off in the next 5-6 years, if that helps. I think we need to just weigh current offers and run numbers and compare to keeping our current 5-year ARM.</p> <p>Basically, tell me how you recently financed and what options you chose. </p>