Mortgage lenders also provide refinancing to borrowers. Atlanta Mortgage Group Inc. offers “no cost” refinancing, in which the borrower is not required to pay closing costs. In general, there will be fees associated with obtaining a mortgage related to loan origination, appraisal, credit report preparation, attorney fees, title fees, etc. The lender or the borrower depending on the terms and conditions of the mortgage must pay these costs.
In the case of a “No Fee” refinance, the lender will agree to pay the fee. In turn, it will charge the borrower a higher interest rate for the life of the loan. Excess interest can range from 0.5 to 1 percent, depending on the size of the loan. However, it makes more sense to pay the normal closing costs of the loan and pay a lower interest rate.
Another Atlanta refinancing company, Garrett Mortgage Inc., also offers home mortgage refinancing in and around Georgia. It also offers suggestions to borrowers about the feasibility of refinancing at some point for the borrower.
Home mortgage refinancing reduces the borrower’s current monthly payments, results in faster mortgage payment, and also reduces interest risk by moving from an adjustable rate loan to a fixed rate loan. There is no need to take out private mortgage insurance in the presence of the refinancing option. One can save substantially with a mortgage refinance. A mortgage refinance calculator, which determines monthly payments, interest savings, and the number of months to break even on closing costs, will help the borrower decide if refinancing to a lower interest rate is worthwhile.