How to Refinance with No Closing Costs
Mortgage rates have dropped to historical lows and conventional wisdom would dictate that most American homeowners should refinance. Unfortunately, there are many factors that come into play when starting down the path of refinancing, as there are often some situations that would eliminate a homeowner from even being able to refinance, especially when they’re searching for a refinance with no closing costs.
Having little or no equity in the home will more than likely disqualify you from getting approved for refinancing. This is because mortgages have to meet certain loan to value criteria for you to qualify.
In other situations, you may shy away from even attempting to refinance. Sometimes this is caused by the fear of being declined due to less than perfect credit. Most of the time, however, applicants are scared off by the anticipation of high closing costs. What you may not realize is that finding no closing cost refinance options is possible, if you know how to avoid them.
There are three common ways to eliminate the out-of-pocket expense associated with refinancing your mortgage. Below is a list of the three leading strategies, as well as some information regarding the positives and potential pitfalls of each.continue reading »