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	Main Page-- Mortgage Rates-- Refinance Loan   "No Cost" Mortgage Refinance Loan Programs: 1031 Exchange Financing 125% Loan 1% Loans Auto Loan Adjustable Rate Mortgage (ARM) Assumption Mortgage Bad Credit Loan Bi-Weekly Loan Blanket Loan Boat Loan Business Loan College Loan Condominium Mortgage Conforming Loan Commercial Loan Cash out Loan Debt Consolidation FHA Loan Hard Money Loan Home Equity Loan Home Improvement Loan Interest Only Loan Investment Property Loan Jumbo Loan Land Loan Land Contracts Lease/Option Financing Mobile Home Loan Manufactured Home Loan No Documentation Loans No Cost Refinance Negative Amortization Loan Participation Loan Personal Loan Payday Loan Purchase Loan Refinance Loan Reverse Mortgage Streamline Refinancing Seller Carryback Stated Income Loan Subject To Finance Self Employed Loan Timeshare Loan TownHouse Mortgage VA Loan Wraparound Mortgage 2nd Mortgage 80-10-10 Loan 80-15-5 Loan 80-20 Loan 1) Use the "yield spread premium".  Under this program, Lender will pay all of the closing costs associated with your loan for you. You incur no cost in the transaction. Lender uses what is referred to as the "yield spread premium" from slightly higher than market interest rates to pay these costs for you. While Lender can pay both your closing costs (the true cost of the transaction)  and prepaid items (escrow items for taxes and insurance), many clients using the program decide to have Lender pay only your closing costs. This is because your current lender has an escrow account with approximately the same amount Lender may require to establish a new escrow. Your current lender will refund their escrow account usually 30 days after closing. Depending on your loan amount, "No Cost" refinancing is typically .375% higher. The beauty of the program is that you can lower your payment at any time the no cost rate is lower than your current rate. The old "rule of thumb" was that you had to lower your rate by 2 percentage points for refinancing to make sense. 2) Roll in your costs. Under this program, assuming you have equity in the property, lender can add your closing costs and/or escrow amounts to your loan balance. The advantage is that you will pay market rates. All the comments about closing cost/escrow amounts above apply. Rolling in your costs can be a better option for a "no cost refinance" if you have the equity and expect to remain in the home for more than 5 years. Consider this, if you have a $100,000 mortgage balance, and the market is at 8% without points, lender may have to increase the rate to 8.250% to get enough "yield spread premium" to pay your costs, but if your costs are only $1,000, added to your balance will only be a negligible increase in your payment.