Homeowners Now Can Get Mortgage Refinance without Closing Costs Easily

Compared to refinance, purchase or mortgage without closing costs typically attract higher closing costs

Before opting for a mortgage refinance with no closing costs, it is essential to learn what costs are excluded and what you still need to pay. Many banks offer mortgage refinance without closing costs, but each has its own bucket list of exclusions.

Mortgage refinance with no closing costs usually refers to ‘non-recurring’ costs. Recurring costs such as fees for repayment of the loan, taxes, and insurance payable at the time of closure of due at impounds are usually not included as they are mandatory payments whether you choose to refinance or not.

The non-recurring costs that are included in mortgage refinance without closing costs are: appraisal, courier, credit report, escrow, flood certification and monitoring, lender’s title insurance, loan document and origination fees, notary, reconveyance tracking, recording and wire fee for the bank documents, and taxes.

The costs that you will need to bear when you choose mortgage refinance with no closing costs include: flood insurance premium (if required), grant deeds, associated fees for recording and notary, homeowner’s (hazard) insurance, impounds, interest, taxes applicable on mortgage and transfer, real estate taxes, escrow (or reserve funds) for property taxes and insurance, title policy for the owner, private mortgage insurance (if required), pest control etc.

Additional costs associated with mortgage refinance without closing costs include: fees for payoff demand statement, re conveyance, subordination, and prepayment penalty. Any third-party fees such as change to the title, or death certificates are to be borne by the customer.

As against refinance, purchase or mortgage without closing costs typically attract higher closing costs. The non-recurring costs that you do not need to pay are same as in a mortgage refinance without closing costs. Exclusions are also same except that you will need to bear the fees associated with purchase transactions. These typically include title insurance for the owner and documentation fees for title company documentation.

In addition, whether you apply for a good credit or bad credit no income verification mortgage without closing costs, you will have to pay an application fee before your application is processed. This fee is credited back when your loan is approved. So, if still owed money at the time of closing, the amount is reduced by the amount of the application fees that you had paid. For a 2-4 family home, $300 of the application fees is reduced. However, if the loan does not fund for any reason, the application fees is not refunded.