You have researched your options for getting out of debt faster and determined that a home refinance loan would work well for you. This type of loan allows you to borrow against your home equity. This is the difference in the amount of principal between the original loan amount and your current balance. The only thing stopping you from moving ahead with obtaining this loan is that you do not want to pay closing costs on it. BrightPath is pleased to let you know that we can provide a no cost refinance loan.
Typical Costs Associated with a Home Refinance Loan
Since the purpose of a refinance loan is to save you money and consolidate debt, it is important to compare your potential savings to any fees you might pay for the new loan. These usually include a fee for a new appraisal on your home to determine its value, as well as closing costs when you close on the loan. Appraisals typically run between $200 and $500 while closing costs can vary significantly from one borrower to the next.
BrightPath wants to see you save as much money as possible when completing the transactions so you have more funds available to you to pay down your debt. After all, that was the whole reason you applied for refinancing in the first place. Below are some of our mot popular financing programs, which we can offer as a no cost refinance loan to our customers.
Loan Options When You Want to Refinance Your Mortgage and Consolidate Your Debt
When you compare typical mortgage loan interest rates to credit card and other types of consumer accounts, the difference can be 20 percent or more. If you are only able to make the minimum payment on some or all of your credit cards, you could be paying this high interest rate for many years. Paying off your creditors with your loan proceeds and then making one mortgage payment each month could save you several thousand dollars in interest fees.
BrightPath offers several types of debt consolidation loans based on the value of the equity in your home. We will let you know if you qualify for a no cost refinance loan at the time of your application. Some options to consider include:
- 15-year or 30-year fixed interest rate mortgage can help you pay off your home and debt according to your preferred timeline without having to worry about an interest rate increase for the entire duration of the loan.
- Federal Housing Administration (FHA) Loans: To encourage home ownership and make it more affordable for people, the FHA guarantees loans under this program. That means it will make the payments if the borrower goes into foreclosure. Besides saving on closing costs with BrightPath, you may qualify for an interest rate as low as 3.5 percent with the FHA.
- Cash out refinance loan: This provides you with funds at closing to spend in any manner you see fit. Most people use it to pay down other debts.
We invite you to contact BrightPath to learn more about our refinance options and see if a no cost refinance loan is right for you.