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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (996)	5/9/2003 1:35:29 PM
From: ild	Respond to of 4904

It's a no cost for the borrower, but there are still big closing costs plus the mortgage broker commission. When you do no-cost refi you get a slightly higher rate. I think when the bank that originated the loan sells it to FNM it gets some significant rebate for bringing this high rate loan. But since there is no prepayment penalty this loan can be called and refinanced again, so FNM paid the rebate for nothing. I know some mortgage brokers why said they are already have the money to retire rich when the music stops.