Ways to deal with closing costs when you refinance...

Good morning!

When is it best to roll closing costs into a refinance loan?

Keep in mind there are three ways to handle closing costs on a refinance loan…

1) The borrower can pay them out of their pocket at closing.

2) The mortgage company can pay them by charging a higher rate.

3) We can keep the rate low and roll the closing costs into the loan.

Generally...

If you are planning on staying in the home over 4 years – it’s not a bad idea to roll closing costs into the loan.

If you are planning on selling your home within the next 4 years – it’s not a bad idea to let the mortgage company pay your closing costs and going with a bit higher rate.

Have a good day today!  …and thanks for reading.

Brett

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