There are several options for paying refinance closing costs.
The most common approach is to add the costs to the new loan balance. The benefit of this approach is not having to pay costs out-of-pocket at closing. However, adding closing costs to your loan balance does mean you’ll be paying interest on those costs over the term of the loan.
Another approach is to accept a slightly higher interest rate in order to gain a “credit” that can be applied towards the closing costs. With this option, your monthly payment could be marginally increased due to the higher interest rate, but your closing costs would be paid partially or in full by use of the credit. This common approach is sometimes referred to as a “no closing cost” option.
Finally, closing costs can be paid out-of-pocket at closing. The benefit to this approach is that neither the interest rate, nor the loan balance, is increased to pay the costs.
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To learn more about refinancing with APGFCU, call 888-LOAN-391 (888-562-6391) or complete this CONTACT US form to receive a call from an APGFCU Mortgage Consultant.