No Closing Cost Loans VS Closing Cost Loans

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Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

rocks

Wow, no closing costs, what a great deal. Well, yes, because you won't have to come to the closing table with hardly any money out of your pocket. Just watch out for catchy phrases. They can bury you, just as if you were buried under a pile of rocks. That you can't dig yourself out of this.

So, Advertising, it can be really catchy at times. As a consumer that might not know any better, this sounds like an awesome deal. NO CLOSING COSTS!! Sign me up and 50 of my friends and family members. Because that last lender was charging me about $5,000 in costs.  

Reality check: When it sounds too good to be true, it's because it usually is too good to be true. Why is this? 

 
Take a peak here for the reasons why, because you might not like the answers. (this opens in a new window)

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Ambassador
797,113
. 4Terra Land Brokers .. 828-776-0779 Asheville NC
REAL ESTATE RESOURCES & NETWORK - Asheville, NC
What's Most Important to YOU? Call(828)-776-0779
Thanks for the article, Jeff. I have bookmarked this page and will return to take some good "thining time" wit thisone.
Jun 26, 2007 04:27 PM #1
Rainmaker
49,810
Chrissy Harrison
Referral Only Realty - Longmont, CO
Bookmarked! As usual, thanks for all things mortgage - I learn something new every day.
Jun 26, 2007 04:29 PM #2
Rainer
29,697
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage
Good post Jeff...gotta watch those gimmicks out today...
Jun 26, 2007 05:30 PM #3
Rainmaker
592,421
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Jeff,

No Closing cost loans are the best thing since sliced bread! You've also got to love the loans for only $395.00 they're $600.00 better than the those wonderful $995.00 loans. No really, I think there great,...

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For some people!

I'll gladly write no closing cost, $395.00 and $995.00 loans when they're the best for the client or the client insist. (You just can't educate some people.)

What I won't do is advertise "Never Any Closing Cost" "Only $395.00 Closing Cost" or my favorite local advertising bad advice "If you're paying more than $995.00 to refinance your being ripped off!" The worst advice a consumer can get is to deal with that guy. When you limit your options, you limit the help you can offer the client.

Like you, I give my clients two or normally three options and try to teach them how to select the best one for them.

Our schools don't teach our kids how to understand money and less cash out of pocket sounds great, but these are the same people that think non-profit companies are philanthropic.

Good Post.

Bill

Jun 26, 2007 09:20 PM #4
Rainmaker
731,887
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Agent

Jeff, are you now using the patented Brian Brady bait and switch technique?  LOL  Nicely done!

Jun 26, 2007 09:57 PM #5
Ambassador
746,557
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

JaneAnne......  I hope it becomes quick and easy reading down the road. thanks

Chrissy.... if you can learn something new everyday, that's a great day, week, month, and year. Thanks for stopping by.

Leah.....  it basically comes down to educating the consumer. We all want those great gimmicks that are advertised on tv and in the paper. But until you do your research, it's usually a large percentage of them that are not all cracked up to be what they appear to be.  Thanks for the compliment.

Bill.....  you were scaring me at first, with that long white space. ;o)   Seriously though....  you hit the nail on the head. Many schools don't teach our kids about the fundamentals of money.  And in this case, people will believe what they read. Just a basic fact.  How many people in your time have said... "well, this is what I read. So it must be true, since it's in writing."  Sad, because for the most part, it's usually someone's opinion. Thanks for the feedback and for the compliment.

Chris.....  I actually have done a few of these like that about a month ago. :o)  But thanks for stopping by and for the compliment. 

Jun 27, 2007 12:27 AM #6
Rainer
33,223
SHAUN WREN
LICENSE IS NOT PLACED - Lakeland, FL

Jeff, I love it when you show how it really is.

 

Wake up America!

 

We live in the land of the free.  It was paid for and everything else you pay for. Nothing in life is free.

Jun 27, 2007 12:40 AM #7
Rainer
47,818
Tony Gallegos
Cognicorp Mortgage Banking Advisory - Marietta, GA
Jeff - What's the old saying - You never get something for nothing. Good solid post all consumers must read. Keep pumping out the good advice.
Jun 27, 2007 04:24 PM #8
Rainmaker
94,176
C. Thompson
Loan Modification - Bethesda, MD
Loss Mitigation Cases

Jeff- I love this Blog! The other day, I was at bank of America and noticed the No Closing Costs sign. I turned to my husband and said, "Look honey! A no closing cost loan!" Just then, the teller turned to me and says..." Would you like to talk to someone about this type of loan?" And I say, " No thank you Miss, I am your competition, I know exactly what is going on."

If it sounds too good to be true, it is to good to be true.

Jun 27, 2007 08:44 PM #9
Ambassador
746,557
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Shaun.....   the one thing that I am always going to have to face is that this will never stop. It's advertising and it doesn't matter how big the company... they are trying to get consumers to call in. It's a big fish hook. The average consumer just doesn't know. I lost my sister's friend to a commercial like this, that they had to check it out. They just didn't believe me,  Sad, but reality.

Tony.....  you don't?  Darn.  I get all of these free offers. I thought something was up.  Thanks for the comment.

Callie.....  if you read my comment to Shaun, that is the lender that my sister's friend had to check out. I was pretty strong minded about this and I guess I ticked her off. She was listening to too many other people and she started not to believe me. Again, sad, because we now. Thanks for the compliment.

Jun 28, 2007 12:45 AM #10
Rainer
33,223
SHAUN WREN
LICENSE IS NOT PLACED - Lakeland, FL

You are 100% right. I am with you Brother.

Jun 28, 2007 02:55 AM #11
Rainer
41,109
Dominick Gaccino
Dominick gaccino - Peekskill, NY

i tell people do you honestly think you can get something for nothing?

 

if so do you still belive in Santa Claus and the easter Bunny??

 

One way or another you will pay for a loan

 

By dealing wiyth me i am honest and up front..........im not shgady and trying to bait and switch you

Jun 28, 2007 03:05 AM #12
Ambassador
746,557
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Shaun....  thanks for the support on that one. It just goes to educating the consumer.

Dominick.....    the Santa Claus and Easter Bunny is kind of funny. But in all honesty, if someone told me that on the phone, I think that would be insulting my intelligence, even though you are trying to make a point. I worked with a guy that would come across like this to his clients. The conversations never seemed to go well. There are certain ways in talking to someone to drive your point across. 

Now, I am not saying that you say this to your clients.  But thoughts on paper can sometimes reflect those that are mentioned on the phone or in person. Thanks for stopping by. 

Jun 29, 2007 12:45 AM #13
Rainer
35,048
Olan Carder
Fairway Independent Mortgage - Charlotte, NC
I think we should advertise HIGH COST LOANS...  actually that's what some no closing cost loans end up being.  I believe in finding the total lowest cost solution for my clients.  That is impossible to accomplish by one set way of lending.  You have to know how long they plan to be in the loan.
Jun 29, 2007 04:25 AM #14
Rainer
7,301
J.R. Quarles
Mortgage Executives LLC - Memphis, TN
The Mortgage Innovator

great post Jeff

I with you 100%.... consumers need to wake up and realize that nothing is free... Its always a trick behind it, so read the fine print.

Jun 29, 2007 04:58 AM #15
Ambassador
746,557
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Olan.....  if we advertised high cost loans, you wouldn't get too many clients. Would you?  We know what they are because we are in the business. 

Yes, some of us look for solutions and or many different types of programs to fit the clients needs. But some just go to the company that sounds better, when it might not. 

J.R. ......  yes.....  and not so much wake up.....  but pay attention and ASK QUESTIONS..  This is probably about 30% of the problem. And when a loan officer notices this, they then DON'T volunteer information that the client should know. Not a bait and switch, but just as bad. And then it's easy for the lender to say, well.... we didn't talk about that.  Thanks for the compliment.

Jun 29, 2007 11:09 AM #16
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