Coming up with the closing costs for your original mortgage was probably hard enough, but having to do it when refinancing your Vermont home loan can be a right pain. Closing costs on Vermont refinance loans average $2,950. If you want to avoid paying this amount, you're going to have to get a no closing cost refinance loan.
What is a No Closing Cost Refinance Loan?
When the broker or lender pays all of your closing costs on a Vermont refinance loan, it is known as a no closing cost loan. Closing costs generally include lender fees, document administration fees, credit report fees, title and escrow fees, and anything that is not a recurring cost. Recurring costs, such as insurance, interest, and property taxes are not paid by the lender.
The Catch
If you plan on getting a refinance loan that is referred to as a no closing costs loan, you will want to be careful. Some Vermont lenders advertise this package, but then roll your closing costs into your Vermont refinance loan. Others may cover their costs by charging a higher interest rate. While it is nice to get put of paying closing costs upfront, you will want to make sure that the rest of your refinance is also a good deal.
What You Will Have to Pay
Most Vermont lenders who offer no closing cost refinance loans will require you to fund your own escrow account if you choose to have one. You will probably also be responsible for paying an appraisal fee. If you are interested in buying down your interest rate, you will also be required to pay points in addition to the prepaid interest necessary to bring the loan current with the lenders monthly cycle.
Visit Vermont Lending Center to see our Top 3 Refinance Lenders Servicing Vermont, whether you are looking for home purchase, refinance or a home equity loan.
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