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.
If you need cash out of your house, but don't want to touch your first…
I wanted to address the two most common questions that I get regarding reverse mortgages……
I had this situation come up again recently… Advice: If you enter into a lease…
Merry Christmas! If you want to acquire rental properties, but you are having issues proving…
One of the most important things you will have to do when you apply for…
I wanted to let you know we have a 2% to 5% downpayment and closing…