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To refinance a mortgage, you’ll pay between 2 and 5 percent of the loan amount in closing costs, so if you’re refinancing to save money, you’ll need to calculate your break-even point.
A no-closing-cost refinance gets rid of the need to pay refinancing fees upfront, but it’s not free. ... If you didn’t finance that extra $2,000, you’d pay $126,012 in interest — a ...
Still, refinancing might be worth the time and money if you can get a lower interest rate than what you’re paying right now or use the extra funds you’re pocketing to pay for a large expense.
In a no-closing cost refinance, you won’t pay closing costs upfront. Instead, you’ll finance these fees with the loan (and pay interest on the larger loan amount), or pay a higher interest rate.
Or, they can make extra monthly payments to repay the loan faster. Myth 3: A refinance will affect selling the house. Refinancing your mortgage doesn’t put an additional lien on your home. It ...
With a refinance like this, though, the extra or higher interest can add up to much more than the original closing costs if you keep the loan for another 15 to 30 years — so if you plan to stay ...
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