Where did this come From??? I just had a Client call me, and she said, I know you worked hard fixing my Credit for me, and I do appreciate it, But I just got a letter from a Lender saying he can give me a No Closing Costs Loan... and thats what I want, I am still Shocked. I am a Highly Refered Mortgage Broker in Palm Beach County Florida, and yet I still have to convince people that this is your Life, and your family's life, Not just a Mortgage on your Home. Do you really want to Gamble?
Where in life do we learn that people work for Free, or think you can get something for Free, I remember getting something for Nothing once, and it was worth exactly what I paid for it! So if your Looking for a Mortgage, Try thinking realistically, Your not only wasting your time, and your Realtors, and/or Mortgage Brokers time, but you dancing in unchartered waters. I remember when things got tough, and you could get a $200 T.V. with your Closing, and it only costs you $3000 in Fees, But hey you knew that!! Didn't you?
What is a No Closing Cost Loan? It's when a Lender or a broker offers No costs, as a Leader, yes I said it! Leader, to get you in the door to get your Loan, and when you are offered a No costs loan it is Costing you, sometimes More than if you had Just paid them yourself.
Where does it cost me then? If you are sold on a No cost Loan, then expect for a Fact to be paying it in the Rate, and sometimes even in your new Loan Amount, even with all of the Laws the are supposed to protect the Consumers out there, Companies, and private individuals still come up with a clever way to sell you better than the next Guy.
What Costs are covered in a No cost Loan? Well for one, don't think that you will not have to pay Points, Because you are!! First off, if you get the Zero Fees loan! then you will just be the Victim of a increased Loan amount Covering your Closing Costs, and you will hardly know the difference, because you will think you just got a great deal. Now a true No cost loan is when you will pay for it in your Rate, but there are still charges that you will still be paying up front, but the Very Fine print is too! small and you just can't read it. Expect to pay Per Diem Interest: which is Interest from the day of closing to first of the following Month,and then of course expect to pay your Escrows up front: Taxes and Insurance for your new loan, also you have to pay your insurance up front if it's due for renewal, and any Taxes with the new loan.
What is Closing Costs? and whats Not? If you ever look at your Good Faith Estimate, then you will see the line that says Closing Costs, and another Line that says Prepaids, These two are Different. Closing Costs which is what your trying to save, usually are about $2,500- $3,500 Everything else is Prepaids, those are typically $2,500- $10,000 maybe higher, so no matter what you will be paying Closing Costs, I think you will pay more, in the long Run.
So if you want to save Money doing a Loan, call me and I will pay your Mortgage Payments Too!!! Sadly if you believe this, then you are a bad Mortgage Brokers Best Client! Don't Gamble with your Home, and your Family's Home, One mistake is all it takes, and all because you wanted to save a few Bucks.
Keep yourself educated, and remember, a great Mortgage Broker will be your Choice forever!!
This wasn't meant to answer all of your Questions, but just as an Eye Opener!
Thomas R. Weiss
Office 561-968-6683
Cellular 561-310-0315
Comments(25)