I get this question about closing costs a lot…
…When is it best to roll closing costs into the loan (on a refi)?
Keep in mind there are three ways to handle closing costs on a refinance loan…
1) The borrower can pay them out of his pocket at closing.
2) The mortgage company can pay them by charging a higher rate.
3) We can keep the rate low and roll the closing costs into the loan.
Here’s my advice…
If you are planning on staying in the home over 4 years – it’s not a bad idea to roll closing costs into the loan.
If you are planning on selling your home within the next 4 years – it’s not a bad idea to let the mortgage company pay your closing costs and going with a bit higher rate.
Brett
To sign up for my weekly mortgage quick tips – CLICK HERE.
To download this report “4 Easy Ways To Get Someone Else To Pay Your Closing Costs!” – CLICK HERE.
USDA is a 100% government insured loan. Low rates, and no down payment. However, there…
The bad news is that according to Redfin, 38% of U.S. renters don’t believe they’ll…
In Texas we have some unusual rules when it comes to getting cash out of…
If you pay your property taxes apart from your mortgage payment, and you didn’t get…
If you purchased a home using your own cash, and now would like to pull…
Did you realize that when buying a house from an immediate family member – the…