What is the difference between a “No Closing Costs” refinance and an CBC National Bank FHA Streamline Rate Reduction with a Title Fee Credit (TFC)?
|A Traditional Refinance w/ No Closing Costs||An CBC National Bank FHA Streamline Rate Reduction with a Title Fee Credit|
|The lender does not charge any upfront points.||CBC National Bank will not charge any upfront points.|
|The borrower customarily pays the typical title (settlement) and recording fees out of pocket OR the borrower adds the fees to the new loan balance. With “No Closing Costs” loans, the borrower does not pay direct lender fees, but MAY be required to pay some or all of the customary title and settlement costs.||CBC National Bank will pay the customary title (settlement) and recording fees on the loan. At settlement, we will issue a lender credit to cover these costs. Bank fees are NOT added to the borrower’s loan balance. The TFC may result in the borrower paying a slightly higher rate.|
|If the borrower does not want to bring money to closing, a full property appraisal is needed to determine equity and how much room is available for the customary title (settlement) and recording fees to be rolled into the loan amount.|
The difference is simple. The CBC National Bank FHA Streamline Rate Reduction allows the borrower to add less money to their loan balance.