| Many people can't afford to pay a huge | | | | If you choose a no cost mortgage refinance, |
| settlement cost when they refinance their home. | | | | what will happen is that the mortgage company |
| If you are tight for cash then don't worry there | | | | will actually charge you a higher interest rate. With |
| are still options available for you to get the best | | | | this higher interest rate, the company will make |
| mortgage rate you can. Right now, mortgage | | | | more money from the "back end" allowing them |
| rates are pretty low and for many home owners, | | | | to give some of the money back to the |
| a reduction in monthly payments through a | | | | borrower. |
| refinance may be the right medicine to cure them | | | | However, as a borrower, you must be very |
| of this recession. | | | | careful when you choose this no cost refinance |
| So what is this miraculous option? It is a no cost | | | | option. What you need to look out for are loan |
| refinance. A no cost refinance is basically a regular | | | | officers looking to rip you off. This means, they |
| loan but the lender will pay the settlement/closing | | | | will give you an interest rate which is very high |
| cost for you. This means that if your closing cost | | | | and tell you they will pay your closing cost but the |
| is $10,000, it will not be coming out of your | | | | exceptionally high interest rate is earning the loan |
| pocket during closing time. However, it is not as if | | | | officer a fat paycheck. Make sure you shop |
| the lender is gifting you $10,000 towards your | | | | around and find the best deal before choosing this |
| refinance, I mean come on, what mortgage | | | | option. |
| company is going to do that. | | | | |