NoClosingCostRefinance
64No Closing Cost Refinance - It's a Mortgage Lender Trick
No Closing Cost Refinance
Being a mortgage lender for almost 10 years now I have seen just about every scenario you can possibly think of. Refinancing is never straight forward and all the games that mortgage lenders play with closing cost it's no wonder the average consumer gets confused.
A No Closing Cost Refinance is no different.
On the surface it may sound like a good idea to get no closing cost refinance. The reality is that no matter where you go, no matter what you do, there are closing costs to pay to do a mortgage refinance. The loan officer will be paid through the closing costs themselves or they will be paid by the bank doing the transaction.
Ok, that may be complicated but here it is in plain english.
1. Paid through closing costs is normally done through loan origination or points. This is usually a percentage of the loan amount and is considered a part of closing costs. An Example would be if we had a $100,000 loan and the loan origination or points were 1% then the fee for the loan is $1000.00. This isn't the no closing cost refinance method but it's worth noting the difference.
2. Paid by the lender is simple. The loan officer will negotiate with the homeowner a higher rate and by doing so the bank that funds the loan will pay the loan officer a premium or bonus for selling a higher interest rate. This bonus is then used to pay all the fees and closing cost creating a no closing cost refinance.
It's just a game the lenders play to lure you into their office offering you what you want. The thought of no closing costs is really appealing to many homeowners looking to refinance their mortgage. Just know you will be getting a higher interest rate in exchange for no closing costs.
Industry Resources
If you need some guidance on dealing with a Mortgage Refinance in California.
Refinancing an Upside Down Mortgage is difficult so hopefully you will find good information there. Upside down mortgage 2009
Mortgage Appraisal Issues are popping up all over the place thanks to the new mortgage appraisal rules, hopefully this will help you understand those.
No Closing Cost Refinance California
- Take Advantage of Home Equity Loans
@font-face { font-family: "Times New Roman"; }@font-face { font-family: "Courier New"; }@font-face { font-family: "Wingdings"; }@font-face { font-family: "MS Reference Specialty"; }p.MsoNormal, li.MsoNormal, div.MsoNormal { margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: "Times New Roman"; }a:link, span.MsoHyperlink { color: blue; text-decoration: underline; }a:visited, span.MsoHyperlinkFollowed { color: purple; text-decoration: underline; }table.MsoNormalTable { font-size: 10pt; font-family: "Times New Roman"; }div.Section1 { page: Section1; }ol { margin-bottom: 0in; }ul { margin-bottom: 0in; } Take advantage of a home equity loan Do you need some cash toward house repair or funding your child’s college education or medical bills? Do you need money to invest in shares? If yes, you can take advantage of home equity loans. These loans are also known as second mortgage. You may get the loan if your home equity is more than 20% and you have no hindrance on your existing property. Home equity loan – What it means Home equity loans are those which allow you to borrow money, using the equity on your home as collateral. As you are keeping a security against the loan, you may get lower interest rate. You can either opt to take a fixed rate mortgage or an adjustable-rate one. It is difference between the value of your home and the money you owe. Say, you owe $150,000 and your home value is $450,000, so, your home equity will amount to $300,000. You can get a loan amount of $300,000. In this type of loan, the outstanding amount will reduce every month by the amount of cash coming in. However, if you withdraw cash or pay your credit bills with this cash, the balance will increase. You also have to keep in mind that if you don’t pay more than the minimum interest-only amount each month, your interest may add up to an excessive lump sum over the loan term. You can obtain a home equity loan to fund for the following expenses: Home repair: You can take the loan to do some repair work in your house. Medical bill: You can pay your exorbitant medical bills with this loan. Home renovation: With this loan you can renovate your house by going for new wallpaper or installing new gadgets. Debt consolidation: You can consolidate your high interest bills and pay off the new consolidated loan with the money you will borrow against home equity. College tuition fee for children: You can pay for your child’s college education with this loan. Fees to obtain a home equity loan To obtain a home equity loan, you need to pay fees for the following: Loan origination feesHome appraisal feesTitle feesArrangement feesStamp dutiesClosing feesEarly repayment fees Pros and cons of home equity loans The advantages of obtaining a home equity loan are: If you have higher home equity, you can get relatively large amount of loan. It comes with flexible features, like, you can pay toward the principal by paying additional amount to the minimum repayment amount or you can pay the interest only each month.The interest rates on this loan is lower than personal or credit card loans.You will enjoy tax benefit for the monthly payments you will make toward the loan. The loan comes with redrawing facility, so, if you need extra fund, you can have access to it.If you pay wages into your account each month, the interest will reduce. It will take less time to process the loan application The disadvantages of obtaining a home equity loan are: You can lose your home if you are unable to make the monthly payments. If the equity drops too much, you will owe more on your home than its actual value. You need to pay for various charges while obtaining this loan. Before obtaining home equity loans, you should shop around and compare the quotes offered by various lenders, banks and credit unions. You can also get references from your family members, neighbors, friends and office colleagues. You should also have good credit rating, in order to get lower interest rate. You should also check the reliability and the authenticity of the lending institution with the BBB and make sure to get the best deal.
- Short Refinance Paperwork - Short Sale Paperwork
Working with us for a Short Refinance or Short Sale? We need the following paperwork from you in order to complete the process:DOWNLOAD PAPERWORK HERE!Client Information sheet completed Financial Assessment Form completedClient Authorization completed and signedPayment Authorization completed and signedHardship Letter - written by you - see example The next set of documents will be used for both the negotiations and the refinance. The documents will need to be current so you will need to keep our records accurate as we work through the process:Current 1st Mortgage StatementsCurrent 2nd Mortgage Statement (if applicable)Last Two (2) Months paystubs for all borrowersFederal Tax Return for Last Two (2) Years - all pages for all schedulesBank Statements for all accounts for Last Two (2) Month - all pagesCopy of Note from last mortgage transaction for both 1st and 2nd MortgagesIf you have questions please let us know. Please fax or email us your paperwork Fax number 916-773-7793Email - brent [at] brent lane . net Looking forward to working with you!Brent LaneShellie Hatfield
- Sacramento Area Property Taxes- Shouldn't Your Tax Bill Go Down?
Sacramento Property Taxes- Did your Property taxes Decrease? Here is a great video that explains the position of the tax collector on decreasing property values and the the roll out of lowered property taxes. Property Values Decline In the Sacramento Valley, Did Property Taxes go along with the values in the area. Channel 3 gives us good access to the local tax assessor to go into detail on the matter.Property taxes are due Thursday — and residents of Sacramento and Placer counties can pay their taxes online until midnight.
