My loan officer laughed when I asked about the "no cost" refi

So I'm sitting with my loan officer last Tuesday and she's walking me through a cash out refi on my duplex in Phoenix. She throws out this number for a "no cost" option and I'm like sweet, sign me up. Then she stops and says wait, let me show you something. She pulls up a spreadsheet where it listed all the actual costs being rolled into the loan balance. Turns out a "no cost" refi just means you're borrowing more money to pay the fees. The origination fee alone was $4,200. Has anyone else had a lender try to sell them on a no cost deal without explaining that part?

2 comments

2 Comments

noranguyen23d ago

Yeah same thing happened to me, they baked over 6k in closing costs right into the new loan balance.

gavinp4423d ago

Honestly that's shady as hell.