No Closing Cost Refinance - Mortgage No Closing Costs - CapCenter Blog

No Closing Cost Refinance Options in Virginia

Beth — Fri, 20 Apr 2012 17:11:16 +0000

If you have ever even considered refinancing your current mortgage, now is the time. With the no closing cost refinance option from CapCenter, homeowners in Virginia can save more than ever before. Not only can homeowners lower interest rates, but they can also pay off their mortgages sooner or lower their monthly payment – and sometimes both. Because CapCenter offers homeowners the chance to refinance without paying closing costs or fees, homeowners will save even more than if they turned elsewhere.

How Much Will I Save?

A homeowner who decides to refinance through CapCenter can save thousands of dollars. Basically, this includes the sum of the application fees, commitment fees, funding fees, document review costs, appraisal fees, fees associated with pulling your credit report, flood certification, tax services, processing and underwriting fees, title search fees, title insurance fees, associated postage costs, government recording fees and taxes, as well as the attorney or closing agent fees that many companies charge. On average, these fees cost between $20 and $500 each depending on the item, but with a CapCenter no closing cost refinance, each of these items costs exactly nothing.

The $3,212 savings is only an estimate, and you could end up saving much more. Homeowners are free to use their savings any way they like. Some CapCenter clients use their savings for a vacation, while others opt to reinvest the savings back into their home loan.

To figure out how much you could save, visit the CapCenter refinance calculator. To determine your savings, you only need to plug a few details into the calculator. These details include the value of your loan, the value of your property, and the amount that you currently owe. To ensure that you get access to the best refinance rates for your scenario, you will also have to specify whether your home is a single family home or townhouse and whether it is your primary home, your secondary home, or your investment property.

Would I Even Qualify?

When many people ask themselves whether to refinance, they stop before doing much investigation because they are unsure of whether or not they will even qualify for a refinance. If you are unsure, there is no reason to stop your research. The knowledgeable team at CapCenter is available to speak with you on the phone (our toll free number is 800-968-5844) or in person in their offices about your particular situation. They can answer any questions that you may have. If you are ready to apply for a no closing cost refinance, you can go to our easy online application.

When CapCenter looks at no closing cost refinance applications, one of the first things that they evaluate is the applicant’s credit history. While most CapCenter clients have good credit, CapCenter also provides FHA loans, the terms of which are often less stringent. Thus, many applicants with less-than-perfect credit histories are able to get approved.

Even people who have recently purchased their home are often eligible for a refinance. CapCenter has worked with clients who have had their homes for less than six months, and they have been able to help these clients negotiate a new mortgage with lower monthly payments, better rates, and even shorter terms.

Why Should I Bother?

The benefits of refinancing are astounding. Homeowners who wish to shorten the life of their loan can often reduce their term from a 30-year term to a 15- or even a 10-year term. This means that with the same monthly mortgage payment, homeowners can pay off their home faster than they would with their current mortgage. In some cases, they can even achieve this feat with a lower monthly payment. The refinance calculator lets you choose the desired length of your new mortgage term. Using this tool, you can see how much your payments would be if you opted to pay your home off sooner rather than later.

The reason for this difference is all based on the lower interest rate that you will receive through refinancing. Even a change of half of a percentage point can save you thousands and thousands of dollars over the life of your mortgage. These savings are in addition to the savings that you receive by getting a no closing cost refinance loan rather than a conventional one.

Currently, mortgage refinance rates are more attractive than they have been in ages. If you are ready to start saving or if you are ready to pay off your home faster, now is the time to contact CapCenter about their no closing cost refinance. Their easy online application and knowledgeable staff will ensure that you get the savings that you deserve.

Closing Costs: Pro-Rata Interest

admin — Thu, 15 Dec 2011 12:00:16 +0000

These costs are typically paid for by the buyer, but can be reimbursed by the seller. Since the set day for the mortgage to be paid typically isn’t the same day that closing occurs, an adjusted payment and interest is calculated based on the date of closing and when the next payment will be due.

Closing Costs: Pro-Rata Homeowner’s Association Dues

admin — Fri, 09 Dec 2011 12:00:43 +0000

These costs can be paid by the buyer, the seller, and are only paid if the home will be part of a Homeowner’s Association. Much like pro-rata property taxes, the costs are calculated based on the portion of the year that the home will actually be owned since closing rarely happens on the day that the costs are assessed.

Closing Costs: Pro-Rata Property Taxes

admin — Fri, 02 Dec 2011 20:26:17 +0000

Pro-Rata Property Taxes can be paid by the buyer, the seller, or both and reflect the fact that most houses don’t go into closing on the same day that property taxes are assessed. Because of this, taxes are calculated based on the portion of the year that the house will actually be owned.

Closing Costs – Pre-Paid Property Insurance

admin — Sun, 20 Nov 2011 12:00:21 +0000

The lender on the mortgage will typically require that the mortgaged property be insured throughout the life of the mortgage. This is typically paid by the buyer, but may be reimbursed by the seller. The entire first year of the insurance premium can be required by the lender, which can be added to closing costs if the buyer has not already paid the insurance company directly.

Closing Costs – Home Warranties

admin — Thu, 10 Nov 2011 12:00:39 +0000

A home warranty can be purchased by either the buyer or the seller, with the buyer deciding to add it at closing and the seller using it as part of their marketing strategy to sell the home by offering the warranty.

Home warranties are purchased for resale homes to insure the major household systems against repair or replacement in the first year of ownership. It’s a way to make sure that for the first year of owning a home, the new homeowner is protected against appliance breakdown resulting in them having to spend hundreds or thousands of dollars on repairs and replacements.

Home Warranties are optional and are typically not required by lenders as a condition of the mortgage loan.

New Refinance Opportunities for “Underwater” Homeowners

Beth — Tue, 08 Nov 2011 18:09:52 +0000

Recent News about the Home Affordable Refinance Program

On October 24, 2011 the Federal Housing Finance Administration, with Fannie Mae and Freddie Mac, announced changes to the Home Affordable Refinance Program (HARP) to make it easier for certain homeowners to refinance their home mortgages and take advantage of historically low interest rates currently available.

Specifically, HARP is designed to allow qualified borrowers to refinance without the cost of Mortgage Insurance EVEN IF the market value of their property has fallen to the point that they currently have little or no equity in their property (but only if the borrower is not currently paying for MI).

Q: Who is eligible for HARP?

A: Only borrowers whose existing mortgage was sold to Fannie Mae or Freddie Mac prior to June 1, 2009. And, borrowers must be current on their mortgage payments with no late payment in the past 6 months and no more than one late payment in the past 12 months.

Q: How do I know if my mortgage is owned by Fannie Mae or Freddie Mac:

A: For Fannie Mae, go to: www.FannieMae.com/loanlookup/ or call 800-7FANNIE.

For Freddie Mac, go to: ww3.FreddieMac.com/corporate/ or call 800-FREDDIE.

Q: When are the changes effective?

A: Fannie and Freddie will provide additional information to lenders by November 15. We don’t yet know the timetable for implementing the changes, but CapCenter will move as quickly as possible after this information is available.

Q: Does a borrower have to refinance through their current loan servicer?

A: No, a borrower may choose a different lender. CapCenter is able to help borrowers whose loans are owned by Fannie Mae.

Q: May I increase my loan amount to get some extra cash?

A: No, this only applies to borrowers who are interested in refinancing only their outstanding balance.

Q: Should I wait to refinance until these changes are implemented?

A: Given the historically low rates currently available, we generally suggest that borrowers do not wait, but we would be glad to discuss your specific situation with you.

Please check back with us on November 15 for additional information.

Closing Costs – Inspection Fees

admin — Tue, 01 Nov 2011 16:07:14 +0000

An Inspection Fee is a fee paid from the buyer (though occasionally by the seller) to a licensed home, pest, or other inspector. Some lenders will require inspections for things like termites to verify the property is in good condition and to ensure that the property will retain its collateral value in order to secure the mortgage.

Inspections are beneficial to the buyers as well since they can help identify problems that may not be readily apparent for a variety of reasons, helping to save money down the line or to push you towards another home.

Closing Costs – Appraisal Fees

admin — Tue, 11 Oct 2011 16:04:32 +0000

The purpose of the appraisal fee is compensation for a professional, licensed appraiser to perform an appraisal on the property to verify that the property’s fair market value is equal to or greater than the asking sale price.

This fee is usually paid for by the buyer, though negotiations can end with the seller paying the fee, and is often required by lenders as a condition of the mortgage loan.

Closing Costs – Points

admin — Fri, 07 Oct 2011 15:51:40 +0000

If you’ve ever purchased a home you’ve probably heard about points, whether you purchased them or not. For those that aren’t familiar with the practice of buying points on a mortgage, it’s money that the buyer gives to the lender as a form of up-front, pre-paid interest rate on the loan, with one point equaling one percent of the loan.

Purchasing points can be done for various reasons, including in an effort to lower the interest rate on the loan, or to have a lender agree to let you qualify for the loan. While lenders requiring the purchase of points is their way of protecting themselves, a buyer deciding to purchase points represents something of a gamble, with the buyer having to know there will come a point where the money they put in up front will be off-set by what they’re saving down the line with the lower interest rate.

Deciding to buy points on a house that you plan to quickly refinance or resell isn’t a wise choice as you’ll end up losing money in the long run, but it can be beneficial if you’re planning to have the house past the point where the costs off-set.