A no closing cost refinance loan is often advertised as a "free refinance" claiming that it will not cost you a dime to refinance. While it is true that these refinance loans require no out of pocket expenses, it is often the case that you will end up paying more throughout the course of your mortgage with a higher interest rate and an increased balance on your loan. However, with the recent passage of Obama's mortgage relief program, getting a true no closing cost refinance loan is now actually a reality. If you qualify, the government will pay all your refinancing closing cost and you are able to get a more affordable mortgage. With billions of dollars in grants ready to be handed out by our federal government, it would behoove you to look into refinancing a mortgage.
When you refinance a mortgage you are trading your existing mortgage for a brand new one. With all time low interest rates and government incentives, now is the best time in history to refinance a mortgage and should be seriously considered by any homeowner planning on staying in their existing home for at least another 3 years. Any length shorter than 3 years would, under normal circumstances, would not be a wise financial decision. However, if you could get the government to pay your closing costs, then it really doesn't matter how long you plan on living in your home.
Getting a true no closing cost refinance loan is now a reality for millions of Americans applying for a refinance. The Obama mortgage relief plan is not that difficult to qualify for and you might be surprised on how much financial help they are willing to grant you. The program was designed for homeowners who are struggling to make their monthly payments due to current economic hardship. If you can prove that you are experiencing economic hardship whether it is a loss of a job, illness, hospital injuries, or some other justified reason than you might be eligible to receive federal grants to help you refinance a mortgage.
A refinance cost is typically 2-3 percent of your new loan. So on a $200,000 mortgage, this would be about $6,000. Wouldn't it be nice to have the government pay for this for you and give you a true no closing cost refinance loan. There's billions of dollars that are going to be handed out over the next year for this purpose so it would be wise to talk with a mortgage professional who will increase your chances of qualifying for this government money.
You will want to talk with a few mortgage professionals as some are much more knowledgeable than others and can end up saving you thousands of dollars. The best way to get multiple quotes from various lenders is to fill out an online application through a multiple lender site. These sites will provide you 3-4 qualified lenders in your area and it is then up to you to determine who will be able to get you the best deal. With billions of government grants ready to be passed out, it is definitely worth your time to apply.
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