a Cash-Out refi. with NO closing costs..... it possible ?

Question

Good Morning,

I just have a quick question , which is ..... is there a way when you go to do a Cash-Out refi. , that you can do so and NOT have to pay any ( or very little ) in closing costs ?

Thanks for the help

Michael Dunn · Answer

Thank you both very much for your help and input

I'll likely end up just rolling the costs for the refi. into my loan

Even adding $5,000 to my overall loan for closing , can be justified IMO ..... so long as the amount of money ( after ) the $5,000 is enough to cover the majority of a 20% down payment for a future Rental Property .... so after the $5,000 for closing , i'd need to clear $15.000 - $20,000

Robert Bowles · Answer

@Wayne Brooks is correct you can always have the fees paid by raising the interest rate.  You can also have all the costs of the refinance added to the payoff amount, so nothing out of your pocket, but that will lower your cash back.

Ultimately everyone needs to get paid for doing their jobs: title, lender, appraiser etc.

A lot of tittle companies offer a discount if you had your title work done by them previously (I find 2 years is average).  You also should contact your current servicer sometimes they will waive a fee to keep you....but since this is a cash out I assume they will require everything to be redone.

Your best bet is to ask and shop around to keep your costs low.  Then look at the total costs of higher interest rate and/or adding to the principle and see where your breakeven is.

Good Luck

Wayne Brooks · Answer

Sure, they charge you a higher interest, they get paid a yield spread premium from whoever buys the loan, for the higher rate, and they use that to pay your closing costs, so you pay over the life of the loan.  Not necessarily a good deal.