No Cost Mortgage Refinancing

No cost mortgage refinancing is available through companies online who take credit and personal information from the applicant, and pass that information on to at least four mortgage companies who will check the credit and make an offer. With that many companies offering refinancing, the borrower has more assurance that he or she is making the best choice for positive changes in the mortgage terms. While the lender is accepting all the costs for this transaction, there is an added cost to the borrower in the form of a higher interest rate. For instance, one company offers an interest rate of 5.500% when the buyer pays the closing costs up front, and it becomes 5.750% when the lending company picks up the closing cost tab.

The reasons for seeking no cost mortgage refinancing are usually to change an adjusted rate mortgage to a fixed rate, or to find a lower interest rate and lower payment schedule. Where an adjusted rate mortgage is in place, it usually means that every five years the mortgage holder reviews the interest rate and changes it up or down to meet the current rate being charged. More often than not, it is an adjustment upward. Either way, this leaves the homeowner in the position of not knowing what his payment will be at each interval. Choosing no cost mortgage refinancing, with a fixed rate, gives the homeowner the advantage of knowing payments will not vary over the span of the loan unless there is a rise in property taxes.

If a house was purchased at a time when interest rates were high, it is a great advantage to the homeowner to seek to refinance when he sees that interest rates have dropped. With no cost mortgage refinancing, the final balance will come down, and so will the monthly payments. It might even be possible to shorten the loan length so he can be mortgage debt free much earlier than originally planned. To the Christian homeowner, this means being a better steward of the money he earns, thus taking care of the material gift of wages God has granted. If an accountant is required, don't be in the position recorded in scripture, where a man asks an accountant of his servant's stewardship after hearing a negative report: "And he called him, and said unto him, How is it that I hear this of thee? Give an account of thy stewardship; for thou mayest be no longer steward." (Luke 16:2)

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