Calling all lovers of home equity loans
A no cost refinance sounds like every borrower's dream: a home mortgage with no extra fees. For a homeowner with little money to spend upfront, knocking those fees off the price of the mortgage can seem like a substantial savings. But is it? The problem with a no cost refinance, just as with so many types of refinance that look good at the beginning, is that the lender recoups the money it loses on fees by charging you a higher interest rate. A no cost refinance typically has a higher interest rate than a traditional refinance. Over time, you may find that you pay more in extra interest than you would have paid in fees.