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 Fact or fiction: "No closing costs mortgage refinancing"
  Where to find the best mortgage refinance rates
By the EchoBay Loans Expert
 Fact or fiction: "No closing costs mortgage refinancing"
Dear EchoBay Expert: On TV, in the newspaper and online I keep seeing advertisements for "no closing costs mortgage refinancing". Are these ads true?

Dear Loyal Reader: Remember when someone once told you that there's no such thing as a free ride? Then there are the sayings that go something along the lines of "don't believe everything you see on TV" and "don't believe everything you read" and so on and so forth.

They all apply to the types of mortgage refinancing offers you are referring to now. Yes, it's true that with no closing costs mortgage refinancing programs you won't pay any up-front closing costs, but that doesn't mean that you're not going to be paying any costs at all.

As nice as your lender may seem, they're not in this business out of the goodness of their hearts; they're in it to make money. Oftentimes, the costs you'd normally pay at closing are rolled into the amount of the loan or the lender will recoup the costs of making the loan by charging you a higher interest rate than what you'd pay elsewhere.

If you really need to refinance and you just don't have the cash to bring to the closing table, then this type of refinancing may be your best bet; but if you have the cash to spare, pay the upfront closing costs and walk away with a lower interest rate or lower principal balance.

 Where to find the best mortgage refinance rates
Dear EchoBay Expert: With so many choices of lenders for a refinance loan in my town and online, where should I look for the best mortgage refinance rates?

Dear Loyal Reader: Generally, the online lenders will be able to beat out your local lenders at every turn when it comes to offering lower interest rates and fees. This is partially because the online lending environment is a bit more competitive and partly because online lenders don't have nearly as much overhead as your traditional brick-and-mortar lenders do.

When searching for the best mortgage refinance rates, do your homework. Contact your local lenders and see what their rates are at and then log on to the Internet and see what the various online lenders are offering. Make sure to look at the total APR and not just the interest rates alone and try to be sure that you are making an apples to apples comparison whenever you're reviewing the rates of different lenders.

Since as little as a fraction of a percent can equate to thousands of dollars in savings, you'll want to be absolutely sure that you check into all of your options prior to committing to a specific lender. With a financial decision as big as a mortgage refinance, you don't want to suffer any buyer's remorse.

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Avg. National Rates
30 Yr Fixed 5.78%
15 Yr Fixed 5.39%
1 Yr ARM 4.80%
WSJ Prime 6.50%
Fed Funds 3.50%


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