No Cost Loans

No Cost Refinancing–Q&A:

You may be able to reduce your monthly payment by refinancing your existing loan. We can help you do this, often at no cost. Here's how:

Is it truly no cost?

Yes. You pay no points, fees, or closing costs of any kind. Your balance is simply transferred to a new lender and we pay all the fees. Some lenders may advertise "No Cost" loans but they add the fees to your loan balance or have expensive pre-payment penalties. None of our loans are structured this way.

Are there fees, who pays them, and how are they paid?

Fees like appraisal, title, escrow, and credit report are being incurred, but are being paid by your new lender to get your business. The new lender pays Bellevue Mortgage to perform the service and deliver a new client to them. You, however, pay nothing and will not have any costs rolled into the new loan.

If I pay points and fees would my rate be lower?

Yes. However, it can take 2-5 years to break even on those fees. A decision by the borrower to pay closing costs assumes rates will never get better and you will never refinance or move. With No Cost loans you pay nothing, so you are free to take advantage of any future rate drops. If you currently have an ARM, a new No Cost ARM can lower your rate and lock in a lower payment until it makes sense to convert to a fixed rate. You save money from day one and avoid the expense of thousands in loan fees. No cost loans make sense if your new rate is lower than your old rate-- it's that simple.

What is a streamlined refinance?

Streamlined loans require less documentation and are processed in less than 14 days. To streamline the processing of your application we need the following: last 2 year's W-2's, last 2 pay stubs, last 2 investment account statements, and evidence of homeowner's insurance. That's it. Once you are a Bellevue Mortgage client all of this information is kept on file so you can quickly take advantage of any future rate declines. This makes refinancing hassle-free. For 90% of Americans, their mortgage is their largest debt, and their house is their largest asset. They both deserve full-time, informed monitoring to maximize future opportunities.

Are there any prepayment penalties?

No. You can pay off your loan at any time or make extra principal payments at any time. This leaves you free to take advantage of any future rate declines should you wish to refinance again.

This is a true "can't-lose" situation for you as a homeowner - you get the benefits of a lower interest rate while incurring no costs to refinance. In many cases you can also tap into the valuable equity in your home by taking "cash-out" in the refinance.

To see if a No Cost refinance makes sense for you, please click on the refinance analysis tab below.