Has anyone here ever done it? I hear ads on Sirius all the time from this group called Lenox Financial who claims to be able to do it with no closing costs. I can not fathom how this is true. Honestly, I figure they just charge a fee of some sort that might not neccisarily be as much as closing costs, but I don't know.

Here is the website: http://www.lenoxfinancial.com/why-no-closing-cost.php

And honestly how could you not trust this guy??



Anyway can someone explain to me what the catch here is, and also perhaps share any refinancing advice/stories.

Thanks.

10/28/2008 1:22:49 AM

Usually they recoup the closing costs by charging a higher rate. If the rate is comparable to what you have now I do not know what the catch could be.

Just be prepared for a bait and switch if you can apply. The refi places are notorious for that. They will tell you that you "qualify" for something different from what the website is advertising.

The refinance I did on my house was probably the worst financial decision of my life.

10/28/2008 1:33:28 AM

My parents refinanced their home and have really regretted it.

10/28/2008 7:40:21 AM

if you're going to refinance, which can be a good move sometimes, just go through your existing mortgage company or another reputable mortgage broker. No need to go though shady people who advertise on AM radio and on banner ads.

10/28/2008 8:48:18 AM

My folks have refinanced their house at least three times. The trick is, make sure that you're paying less when it's all said and done. It's not like you won't know what the costs will be before you have to sign. If you refinance into a worse financial situation, you're nothing but a lazy moron who got caught up in some hype and was too lazy to do some math.

10/28/2008 9:52:09 AM

^

10/28/2008 10:00:14 AM

"no closing cost" is always misleading.

you are going to have some closing costs for escrow. that usually gets people.

10/28/2008 10:31:46 AM

also, when they say "no closing costs", you still pay, they just call it something else.
It's like when a bank says they have "no finders fee", but then they charge you an "origination fee" that is the same amount

10/28/2008 10:54:27 AM

OK, here is the thing. There are about 50 kazillion different financial calculators, and not all the questions are not 100% cut and dry. Here's one:http://tinyurl.com/5vsb7b

Anyway if you bother to click the link, there are questions like "What is my savings rate?" Well, who knows what it will be over the next few years. I suppose this question assumes I take all the money I save on my new lower payment and sink it into some investment, but right now the stock market sucks, and who wants to put it in a savings account (maybe a money market or something). Not many people refinance so they can save or invest the money, or I would guess. Maybe I am wrong.

Another question is how long will I keep the property. I have no idea. I intended on selling the property a few months ago, but between retarded people and greedy/idiotic lenders, I was unable to without taking a huge loss. So who knows...

Along with that is the fact thet it took me nearly two years to pay down $9000 in principle, and now if I refiinace I am right back where I started. Regardless of the long term outcome, it still makes me feel shitty to lose any equity I had gained.

[Edited on October 28, 2008 at 2:30 PM. Reason : fixed for poster]

10/28/2008 12:57:38 PM

http://www.daylightdm.com/quote

30 year fixed refi's at 5.25% today with NO points and NO origination fee for most scenarios.

11/25/2008 11:06:51 AM