Inflation is currently on the decline, diminishing the likelihood of future rate hikes. We anticipate that the Federal Reserve will opt for rate reductions in 2024, and that this will lead to a decrease in mortgage rates as well.

At the Frank Rexford Mortgage Team, we are against burdening our clients with paying points during home purchases, and believe in minimizing the financial impact of closing costs in refinancing transactions. We consistently monitor your rates and loans, looking for the opportunity to offer a no-closing-cost refinance, and when that opportunity emerges, we promptly get in touch.

Our successful track record in employing this no-closing-cost strategy during previous downward rate cycles highlights its effectiveness. Unlike the rapid ascent of rates, their descent is gradual, often occurring over an extended period of many months and even years. The immediate advantage of a no-closing-cost refinance is evident, eliminating the need for years of payments to recover closing costs. In some instances, we’ve facilitated multiple no-closing-cost refinances for the same client, taking advantage of this downward cycle and demonstrating the flexibility and benefits of this approach.  Here is one client example – with real numbers:

Date15 Year FixedLoan AmountClosing CostsWe PaidClient PaidNotes
1/28/20194.000%$453,000$2,493.84$2,843.75($349.91)Client made a profit
8/16/20193.250%$448,000$1,489.80$2,240.00($750.20)Client made a profit
3/24/20202.875%$438,000$2,738.79$2,740.00($1.21)Client made a profit
10/22/20202.500%$427,500$2,752.58$1,603.13$1,149.45Client paid a portion
9/9/20212.125%$411,700$2,216.77$2,058.53$158.24Client paid a portion

This client refinanced 5 times over 31 months, with closing costs totaling $11,692 for all 5 combined.  We paid $11,485 on their behalf – and so this borrower paid a total of $207 in closing costs for 5 refinances!

We give the option for the borrower to pay all or some or none of their closing costs – it is always your choice – you get to do what’s best for you, and we’ll help you decide.

Falling Rates For 2024?