Pro tip: refinanced 2 years early and saved $220 a month

I locked in at 4.8% back in 2021, then last spring my credit union offered me a 3.9% refi with no closing costs. Did the math and it cut 5 years off my term too. Has anyone else had luck with no-cost refinances from local lenders?

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the_zara3mo ago

free" refis usually just roll the costs into the loan amount.

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hunt.rowan3mo ago

My last refi with a local credit union in 2023 was advertised as "no cost" but when I actually read the closing disclosure, they had a $4,200 lender credit that exactly offset $4,100 in origination fees and title work. So yeah, they just bumped the rate up by 0.25% to give me that credit, meaning I'm paying extra interest every month for the life of the loan to cover those upfront costs. The math works if you stay in the house long enough to break even on the rate difference, but for most people bouncing around every few years, that "free" refi is actually losing them money.

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