| When you are cash poor a no closing cost | | | | is to keep on top of all of the fees that are being |
| refinance may seem like the perfect way to get | | | | charged so that you know what exactly is being |
| yourself out of debt. An important thing to | | | | added to the current loan principal that you are |
| remember is that while you may be able to | | | | refinancing. This will include bank fees, appraisal |
| complete your refinance without shelling out cash, | | | | fees, home inspections and other miscellaneous |
| you are in fact paying for the new loan. You are | | | | fees. Do not panic about this; rather stay on top |
| simply wrapping the costs into your loan, or | | | | of it. |
| paying it through a higher interest rate. | | | | There are many people who may try to talk you |
| Before you decide that a no closing cost refinance | | | | out of this option. The truth is, it may be all you |
| is just another gimmick, stop and think about the | | | | have available to you. "No closing costs" doesn't |
| outcome of this type of loan. Although sound | | | | mean the loan is free, it just means you do not |
| financial decisions take into account the long term | | | | have to pay cash up for it. If you are on top of |
| picture, when you are close to going under | | | | this distinction you will not get taken advantage |
| financially, a quick life saving solution is what you | | | | of! |
| need most. The long term can be addressed once | | | | What you do not want to agree to is using your |
| you are out of the imminent black hole. | | | | mortgage interest rate as the means of covering |
| The first meeting with your banker and all of the | | | | the closing costs. If your lender says that you will |
| information gathering that will take place at that | | | | need to agree to a higher rate in order to avoid |
| meeting is available free of charge to any | | | | paying cash up front for your fees, consider |
| customer who enters a bank. You can get your | | | | finding another lender. This is a way that banks |
| credit history, credit scores and pre-referral for a | | | | can make money on your loan. Any reputable |
| new loan all for free. You can even do some of | | | | bank will consider your needs and what it will take |
| this on line from home. Once you have this basic | | | | to keep you in your home. Adding closing costs to |
| information you will be able to choose the best | | | | your loan principal is the best route to ask for. Be |
| loan option for your situation. | | | | firm and stand your ground. |
| If you find that you have no cash available for a | | | | While it may seem nice to be getting a free loan, |
| refinance and all of the fees and closing costs that | | | | the truth is you are simply paying for it over the |
| come with the process then you will need a no | | | | life of your loan, It will feel free, and in reality, |
| closing cost refinance. Your first order of business | | | | that may be good enough! |