The No-Cost Mortgage Refinance Option

Navigating the fees associated with mortgage refinancing can be tricky. A no cost mortgage allows you to refinance your current home loan without the need to pay high up front fees. A no cost mortgage simply means that you don’t need to pay your lender up front. Your lender charges for the service and you will usually end up paying a higher interest rate on your new home loan.

Mortgage Interest Is Deductible

If you opt for a no cost mortgage refinance, you should know that you can deduct your annual mortgage interest from your taxes each year. This allows you to effectively claim your mortgage refinancing fees as a tax deduction. If you paid discount points to lower your rate, you can usually include those as deductions as well. 

Benefits of No Cost Mortgage Refinancing

A no cost mortgage refinancing also allows you to take advantage of low interest rates without having to save up money to pay for closing costs on the new loan. This type of loan works best for homeowners that are planning to sell within a few years. The additional costs you incur over time with a higher interest rate can easily exceed the up front closing costs you would have paid.