Understanding A No Closing Cost Mortgage
When you are looking into purchasing or refinancing your home, one of the considerations is how much it is going to cost to conduct the transaction. Many mortgage lenders use the phrase “no closing cost mortgage” in their advertising knowing that this will attract the attention of borrowers looking to minimize the expenses involved in home financing.
A “no closing cost mortgage” is an option that is typically offered by most lenders. This option is always available, and it is not any kind of special offer or promotion for the consumer. The phrase simply addresses a method of structuring your loan wherein you get credit from the interest rates that are available to cover all or most of the closing costs connected with financing a home. The following are examples of the options available from a low priced mortgage broker:
3 Most Common Loan Rate Options
- Select the lowest rate available with points/origination fees and all of the standard title/escrow fees, state taxes, appraisal, credit, etc.
- Select the lowest rate available without points/origination fees while still paying the standard title/escrow fees, state taxes,appraisal, credit, etc.
- Select the lowest rate available without any points/origination fees and without having to cover the standard title/escrow fees, state taxes, appraisal, credit, etc.
Remember, as the consumer, that everyone’s situation is different, and that mortgages are not a “one size fits all” proposition. This is why you position yourself better when working with a trusted mortgae broker verses one of the big banking institutions. Share your situation with us so that we can help you determine if you will benefit more from the lower rate and higher closing costs or from taking a slightly higher rate with lower or no closing costs depending on your short term and long term goals. Any of our qualified loan professionals would be happy to provide you an obligation free mortgage analysis and their professional advice and experience to assist you in making the best choices and saving you the most money.
Buying A Home or Looking to Refinance and want to know if a No Closing Cost Mortgage is right for you?