REFINANCE
Whether you want to drop your interest rate, lower your monthly payment, eliminate PMI, shorten the term of your loan or cash out, we’ll help you refinance with confidence!
Please note that the interest rate and APR are dependent on loan program selected and factors such as credit score.
NO POINTS / NO CLOSING COST LENDER CREDIT REFINANCE PROGRAM
At Synergy One Lending we offer a way for qualified borrowers, on qualified mortgages, to refinance their current mortgage and pay no closing costs. We achieve this by providing a lender credit that covers all closing costs associated with the refinance. That means no out of pocket fees.
To take advantage of this program, you pay a slightly higher interest rate – typically .125-.375 of a percentage point higher – but we cover all your closing costs via a lender credit. That means no out of pocket fees.
So, does paying a higher rate really make sense? In many cases, the answer is yes! Consider this example. On a $350,000 loan, the closing costs to refinance would be approximately $3,800. If you paid this $3,800, the savings for the slightly lower rate would be only about $55 per month. So, it takes 70 months, or almost 6 years, to break even. But what if you also paid no closing costs and invested that $3,800 instead?
Invested at 4% in a high-yield savings or investment account, $3,800 could earn you almost $12 per month, after taxes. Once you take this into account, the break-even point when paying closing costs is really almost 8 years. Compare this to the length of the average 30-year fixed-rate mortgage in the U.S., which is only about 6 years according to Fannie Mae. This is because many homeowners move to a new home, cash-out for home improvements, use home equity for college education expenses or refinance their existing mortgage to a lower rate.
With no closing costs to worry about, if mortgage rates drop after your refinance closes, you can simply refinance again with no closing costs out of pocket via a lender credit. This can be much more appealing than paying (or rolling into your loan) approximately $3,800 every time rates drop! As you can see, this can be a superior financial strategy. Contact me today to learn about this and your other refinance options.
Synergy One Lending does not provide financial or tax advice. Please contact your financial or tax advisor for guidance on these issues.
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