What does it cost to refinance? What are the benefits?

ver heard the old rule of thumb, you should only refinance if your new interest rate is at least two points lower? That may have been true years ago, but with our no closing cost loans, it makes sense to refinance if you can save .125%.   

When you refinance, you might be able to lower your interest rate and monthly payment -- sometimes significantly. You might also be able to "cash out" some of the built-up equity in your home, which you can use to consolidate debt, improve your home, take a vacation -- whatever! With lower rates and balances, you might also be able to build up home equity faster with a shorter-term new mortgage.

Typically, these benefits do cost something, though. When you refinance, you're paying for most of the same things you paid for when you obtained your original mortgage. These might include settlement costs and other fees, an appraisal, lender's title insurance, underwriting fees, and so on.  Randolph Bank's no closing cost loan, however, will save you thousands in refinance costs.

You might have to pay a penalty if you refinance your previous mortgage too quickly. That depends on the terms of your existing mortgage. These penalties are illegal in some places, and more often than not when they're there apply only for the first year or two. I'll help you figure it out.

Ultimately, I will work with you to determine what program is best for you, considering your cash on hand, and how likely you are to sell your home in the near future.