Many people start out with an adjustable Rate Mortgage because the payments are very low at first. However, if they keep them long enough they can end up paying too much. After an ARM is for 2 or 3 years old, it may be adjusting to as high as 9.0% in today’s rate environment. You don’t have to accept this rate increase.

The “No-Cost” program will lower your rate at no cost to you. The broker usually pays for all of the closing costs: title fees, appraisal fees, and credit report fees. There are no Loan fees or prepayment penalties, and nothing is added to your loan balance.

This is a true “can’t-lose” situation for you as a homeowner. You get the benefits of a lower interest rate of while incurring no costs to refinance. In many cases you can actually tap into the valuable equity that you have accrued on your home by taking “cash-out” in the refinance.

No Cost Mortgage Refinance is also known as “No Fee Refinancing”, “Zero Closing Costs Mortgage” or “No Closing Costs Refinancing”. Mortgage refinance have appended costs such as:

• Title Insurance
• Escrow Fees
• Appraisal Fees
• Loan Origination Fee
• Processing Charges
• Lender Fees
• Broker Fees
• Credit Report Fees etc.

These fees are usually added to your loan amount to derive the total amount of loan. In case of a “no cost mortgage refinance,” the loans are charged a relatively higher interest rate but do not include such costs in the total value of loan. The No Cost Mortgage is a type of loan wherein the value of your loan amount does not increase by fees and charges otherwise levied on other mortgage schemes.

No cost mortgage is a wise option for those who have an adjustable rate mortgage. As interest rates rise, one can adopt a no cost refinance mortgage which will help fix the rate of interest over the decided term at no additional costs. The value of the new mortgage does include loan fees, charges or prepayment penalties. This implies that you can take advantage of a lower rate of interest without incurring additional costs ordinarily bundled with a mortgage scheme.

No Cost Mortgage Refinance is suitable:

If homeowners plan to sell their house in a few years.

If the current mortgage rate of interest is higher than that available on a no cost refinance.