Posted on: 29th Jul, 2009 11:10 am
Why do no cost mortgage refinancing?
why not?
To avoid adding additonal monies to your loan balance. I hope this helps...
Good for the borrower not to spend extra money to refinace and good for the lender to keep exisiting customer. It cost money to get new customer
no cost mortgage refinancing can be a lot cheaper in the short run.
you could get a simple estimate of the break-even period yourself, dividing the cash-paid closing costs by the difference in the monthly payment. this will give you the number of monthly payments you will make before the break-even for the no cost mortgage refinance vs the traditional mortgage refinance occurs. have in mind that different calculators may exhibit different result, if they take into account:
1) how closing costs were paid - by cash, or were rolled into the loan;
2) inflation levels;
3) level of return of other financial instruments.
you could get a simple estimate of the break-even period yourself, dividing the cash-paid closing costs by the difference in the monthly payment. this will give you the number of monthly payments you will make before the break-even for the no cost mortgage refinance vs the traditional mortgage refinance occurs. have in mind that different calculators may exhibit different result, if they take into account:
1) how closing costs were paid - by cash, or were rolled into the loan;
2) inflation levels;
3) level of return of other financial instruments.