Question : Closing Cost when refinancing on my home?
my bank says that the closing cost gets rolled into the load when refinancing and takes on no interest. so my question is this; is it possible to payoff the closing cost at any time? and if i do, will the monthly payment get lower?
no cost refinancing

Best answer:

Answer by loanmasterone
Once the closing cost are rolled into the loan, you can not selectively pick that amount out and decide to pay the closing cost off. The way this work is if the closing cost are $ 4,500 and the amount you are borrowing is $ 84,000, rolling your closing cost into the loan the loan amount then becomes $ 89,500.

Your monthly payments are now based on the $ 89,500 with what ever terms you have say a 30 year fixed rate.

If you would like to add an additional payment or two to get your principal balance down you may add any amount you want up to approximately 20% each year. Adding additional money would cause you to pay off your mortgage early.

You should check with your loan docs to see if there is a limit on the additional amount you may pay on your mortgage loan.

I hope this has been of some use to you, good luck.

“FIGHT ON”