Rolled In Refinance Closing Costs

Refinance closing costs can add up rather quickly for refinancing homeowners that are utilizing discount points to buy down their mortgage rate, escrowing their property taxes and homeowner’s insurance, and for those that live in states that charge a hefty refinance mortgage tax.  Many borrowers that could receive a hefty long-term benefit with a refinance choose to stay with their current mortgage because they can’t afford to bring the total amount of refinance closing costs to the closing table.  There is another option though.  Most mortgage lenders will allow borrowers to roll in the total amount of the closing costs back into the loan so there is no money due out of pocket at closing.  This can be done as long as there is enough equity in the borrowers home to fit it under the LTV cap.