What do i need to know before i refinance my house?

Claudia
About points, fees etc. And are no-closing cost loans truly 'no-cost' - or are they wrapping that fee into the new mortgage?

Gaye
First know that noone works for free. Not you, the guy at the bank or even the saintly nurse -does not work for free.There are no truly "no cost" loans.If you cannot pay your loan originator, the bank will but you will wind up with a higher interest rate, or a prepayment penalty.YOu have to compare apples to apples so make sure you get a good faith estimate from everyone that quotes you rates and terms...not just "this is what you can get" over the phone. Avoid junk fees. All they are for is padding your loan officers pocket. These are charges commonly listed as Application Fee (never pay to apply - ever), Admin Fee etc.We have a list of the most common ones available on our website. Cracks me up to see the same guy say "call me i can help you" but what people are looking for is answers to questions...sometimes isn't that all the help people need? Some people look for answers...while others - business!

Corene
There will always be a small cost when refinancing your home, which the lender will charge to cover the administration costs. Other costs will depend on the type of home you have (fixed rate/variable/discounted rate etc..), how long you have had it and if you will be refinancing with the same lender.If you are looking to refinance your home then the first thing you need to do is contact your lender and ask them for a payout figure. They should tell you much you will need to pay if you were to pay out your loan.If you are staying with the same lender, as it sounds that you may be then it is possible that they will refinance for no additional fee. Again though ask your lender what establishment fees you will have to pay for your new loan.In Australia regulation means you should be provided with all this information.