Can You get paid to Refinance Your Home in Farmington Hills? Remember the old adage “If it sounds too good to be true it usually is?” This is normally true where your finances are concerned. Consequently, you would think that old adage would apply to the idea of your lender paying you to refinance your home . . . . except for the fact that it doesn’t. Have you ever heard of negative closing costs? Let’s say you have a lender credit of $5,000 but your loan fees are only $4,000. Basic math tells us that $4,000 – $5,000 = -$1,000. Basically, this equates to getting paid $1,000 to refinance your home. This is because every interest rate comes with a price tag. If you pay points when the rate goes lower, it follows that you would receive a lender’s credit for a higher rate. If you can refinance your home for a lower interest rate that provides a lender credit which exceeds the costs of the loan, you’re eligible for what is known as a negative closing cost refinance. There are a few ways you can receive that –$1,000 such as an escrow deposit, as a post-closing principal reduction, or by prepaying mortgage interest. So, if you think it sounds too good to be true, you might want to reconsider. MMS Mortgage Services, Ltd. 38275 W 12 Mile Rd #100 Farmington Hills, MI 48331 https://www.google.com/maps?cid=17636774335061292863 https://local.google.com/place?id=17636774335061292863&use=posts&lpsid=CIHM0ogKEICAgIDG4LXKhQE