Greg Cowart on Zillow
Greg Cowart - Mortgage Broker or Lender at The Securus Group
Greg Cowart - Roseville Loan Guy

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Free or “No Cost” Refinance? Do they exist?

If you’re like me you can’t go anywhere without hearing ads for FREE and so-called “No Cost” refis. If only it were that easy. The truth is, there is no such thing as a no cost refinance. The lender is simply taking a higher rebate from the bank and applying it to your fees. But how do they get this higher rebate from the lender? By charging a higher rate of course. So, even though they are paying your closing costs for you, are you getting the best deal?

If anyone is interested in HOW this works and WHY this is a bad idea, please leave a comment here. Many mortgage companies have no idea how finances work, only how to market and get the phones ringing. These people are doing Sacramento area consumers a disservice incessantly blasting this message all day, every day. But hey, they just want to sell you a loan. It doesn’t matter if it’s the right loan for you or not.

Sure a no-cost refinance sounds great, but it simply isn’t. It’s one of the worst financial decisions any of us can make.

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