Posted by Mitch on March 01, 2002 at 08:16:56:
More like “no out of pocket” closing costs. If you look close, the costs are wrapped into the new loan. Mortgage brokers,banks,etc don’t work for free. You as the consumer will pay the cost.
Is this for real? - Posted by Mary
Posted by Mary on February 28, 2002 at 21:50:49:
I have heard that there are refinance loans with no closing costs. Is this true?
Re: Is this for real? - Posted by Mike
Posted by Mike on March 01, 2002 at 12:56:54:
Mitch is correct - there is no such thing as no closing costs. Many banks, lenders and brokers will try to make it appear as such but there are always closing costs - some are junk fees, some are taxes and insurance as well as other escrow items and everyone in the transaction gets paid as well from the closing agent, title company, insurance people and the mortgage broker/lender. The amounts and actual items charged very from lender to lender and broker to broker. Most of these charges are legitmant. You dont work for free and neither should anyone else and its a cost of doing business.
That being said - there are 3 popular ways to take care of the closing costs:
- Pay them out of pocket.
- Wrap them into the loan.
- Have the lender give you a slightly higher rate (usually 1/4 to 1/2) and the broker can take care of them through rebate pricing.
Bottom line - be wary of people who say no closing costs as it simply isnt true. There may be NO out of POCKET closing costs but no such animal as NO closing costs.
-mwg