Home equity loans Reviewing the topic
Doing a no cost refinance, a type of home mortgage with no extra fees, sounds like the perfect situation. If you do not have much money saved to spend upfront when you take out the mortgage, getting rid of all the extra fees can sound like it would save you a lot of money. But is that the case? 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 traditional refinance usually has a lower interest rate than a no cost refinance. Over time, you may find that you pay more in extra interest than you would have paid in fees.