Man, people really like to argue of semantics on this blog. Perhpas the better way to call the “no cost loans” is “no out of pocket cost loans”.
And yes, there are benefits to getting one. If your loan rate is .25% or higher than a new “no out of pocket cost loan”, refinancing will save a you a lot over the course of the 30 year loan in interest if you are early on in the loan. In many cases, refinancing to a 30 year also includes a cash back rebate, so in that case there almost isn’t a break even point. You break even almost immediately.
The math can be confusing for most people whixh is why i suspect some will make blanket statements about it one way or the other. If you want the spreadsheets to see this, I can dig up my old Google doc sheets.
Or just ask a loan person to grind through it with you. Real numbers don’t lie. And it depends on your particular situation, particularly how far along are you with your existing loan, and if that makes a difference, how loan you pthink you are going to stay where you are.
But it’s been awhile for me. I paid off my 15year loan on my primary in December 2015 so I don’t have a loan…well not until I buy another place.
