While the mortgage industry is very competitive, it’s smart to be careful when considering no-cost refinancing. The fact is, there are considerable costs involved – usually between $2,000 and $5,000 – and they must be paid for somehow.
Are your costs being rolled into the total loan amount? If so, you’re borrowing and paying interest on more than the outstanding balance.
Or are you being charged a higher interest rate to cover costs?
It pays to remember that fees vary by lender (and often location) and are negotiable.