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No Cost Mortgage Refinancing Allows Many To Tap The Equity Boom
Refinancing usually comes with upfront fees. This can deter many homeowners from refinancing, even though doing so would greatly improve their financial profile. If they don’t have enough savings to cover the closing costs, economically disadvantaged homeowners will not have access to refinancing options. New refinancing loans are being made available that will allow the borrower to roll the costs into the life of the loan, paying no upfront fees.
30 Year Fixed Mortgage Rate
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15 Year Fixed Mortgage Rate
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No closing cost refinance loans roll all of the usual closing fees into the loan. The only cost borrowers have to pay out of pocket is the home appraisal fee. Some no closing cost refinance loans increase the amount of the loan principal. Others increase the interest rate. You will end up paying the fees, you just won’t have to pay them at closing. This guide gives in-depth tips to help a homeowner decide if a no closing cost refinance makes sense for their situation. The article advises people who plan to stay in their homes long-term to look for other options.
Suze Orman has been a household name as a personal finance advisor for many decades. She is known for making complicated financial topics simple for people to understand. When asked about mortgage refinancing, she offered just one rule to consider. Suze Orman says you should never extend your payback period longer than thirty years. This is the total repayment time for both the original loan and the new loan. This article walks you through some examples of refinancing deals that reflect this principle. Crunch your numbers and make sure you meet this one rule.
Many homeowners automatically turn to credit cards to finance high-cost home repairs, but this is the most expensive form of financing available for these types of expenses. Home Equity Lines of Credit (HELOC) and cash-out refinancing offer much lower interest rates and monthly payments.