No Closing Cost Refinance - No Points or Costs

Why choose a "low cost" loan when you can simply pay no costs? No closing cost refinances are one of the best ways for you to save money when you refinance. Why pay thousands of dollars in closing costs if you don't have to? With a no cost - no points loan, we pay all closing costs. You keep the $2000 - $4000 you would usually pay in closing costs. That is just the beginning as we will continue to refinance your rate lower if the market moves down with no costs.

Homex Financial receives rebates from banks on the loans that we sell. This enables us to pay all closing costs and ourselves without having to charge you! This means that you save the typical fees you would be paying for closing costs. They are not rolled into the loan, we pay them!

There are two components to closing costs:
1) The 3rd party closing costs (title insurance, escrow, appraisal, etc.)
2) Points you pay to buy down your rate.

As you can see from this example, although the first loan, a No Costs - No Points program, has a higher monthly payment, it has no cost associated with it. This means that you start saving money right away.

If you choose the second loan, a No Points loan where you pay the 3rd party closing costs, you would spend $2250 in closing costs to save only $33 per month. In other words, it will take you 68 months to break even. That is almost 5.6 years before you start saving money! If you have a longer term horizon for being in your loan this makes sense. Our clients typically average 3 to 4 years in their loans because they 1) Move 2) Take Out Cash 3) Refinance into a lower rate.

If you choose the fourth loan where you are paying the 3rd party closing costs with 2 points, you would spend $6,250 in points and fees and save $97 per month. That is a 64.4 month break-even period or 5.4 years. This makes sense if you have absolutely no doubt you will not be moving or expecting to refnance withing that period and want the lowest mortgage payment.

The most important reason not to give the bank any of your money is flexibility. If we put you in a No-Cost / No-Points Loan and rates drop, we will refinance you into a lower rate with no costs. As the market falls there is no limit to the amount of times we can do this. When the market moves up, you do nothing as you are fully protected.

How can we do this?

We have a lower margin that we need to make on each loan and this enables us to be as competitive as we are. We do not need to make as much per transaction as other companies because we have a high rate of repeat customers from past clients who have been satisfied with our mortgage services.