By Gary M. Singer | RISMEDIA, Monday, April 08, 2013— (MCT)
QUESTION: I am refinancing my mortgage and was told there were no out-of-pocket costs. Now as we approach the closing, the lender wants me to pay several hundred dollars. What’s the deal?
ANSWER: When you get a mortgage loan, you often have the option of adjusting the interest rate by either paying discount points for a lower rate or receiving money back in return for a higher rate. In a refi with no out-of-pocket costs, you actually are receiving a premium back from your lender in exchange for a slightly higher interest rate. This premium is being used to offset your closing costs. Read more…