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-- mortgage interest rates speaking of yields while they're near record low is today's action is any homeowners to refinance.
Potentially saving hundreds of dollars.
Each month in lower payments when many banks are even offering no cost revised but financial journalists -- givens warns there are some.
Hidden dangers here are welcome.
Letter He can easily yield hearing more and more about these no cost refi right.
When you know you're hearing a lot more about them because so many people wanna do a refi given the rates are so low historically low levels in about three and a half percent but.
Their cash strapped their freight fearful they may lose their job they don't have the money.
Whatever the case may be and -- make sense because closing costs are up they're up about 9% of -- last year.
So when a 200000 dollar loan you're looking potentially -- paying over 4000 dollars for closing costs of they were saying wait a minute.
Is there way around this and this is being mark means people who.
Don't have the cash up -- OK so buyer beware that you -- this because even though you don't have the cash up front -- no cost -- is -- -- -- those costs -- -- -- I mean they'll say -- -- costs upfront no appraisal credit check no settlement costs -- over the case may -- -- the -- we're gonna take care of that for you but.
Really there is a cost and you gonna pay for this one of two ways either they're going to on the look costs and the balance of the loan so -- just added onto your principal for example.
Or you're going to -- -- paying a higher interest rate anywhere from an -- to.
Potentially a half percentage point more than if you pay the cost yourself up front but.
-- the lenders -- saying you know.
Considerate do it because you you know you -- your radiology job whatever the case maybe we'll handle it right and consumer to want savvy don't know are right so longer term though -- is the most damages it better to pay higher interest -- or hot I -- -- -- got a good point right.
The more damaging one is going to be the higher interest rate because your entire mortgage is going to be exposed about higher interest -- but if you don't have enough equity in your home.
Under 10% for example you you may not be given a choice so.
The bottom line with any of these products -- you wanna crunch the numbers are calculators on zillow mortgage marketplace -- -- iPhone app.
You just wanna see which makes best sense for you obviously if your cash strapped you can't do it.
And this is something you might wanna consider -- have the money upfront and you know Asia public just go ahead and paid up front of the -- Only if you don't have the money up -- what kind of interest rate savings would make sense to go for one of these no call it generally when you doing at a refi and generally you should try to reduce your rate by potentially -- to three quarters -- percent -- of a percentage point you also have to have sizable equity.
Staking -- -- at least 10% to do this going to be doing a refi in general.
In -- -- makes sense -- -- planning on staying home for a minimum of three years because there are these costs involved and they have gone up.
Really -- in particular in states like New York.
Texas you know that same 200000 dollar alone could cost you well in excess of over 4000 dollars I mean look at those numbers -- That's New York the highest yet again this year here and many thanks to use that information -- are no cost refi are anywhere you said it.
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