"No Closing Cost++ Home Refinance Loan.
Call Today to Combine Mortgage and Debt."
I found this enticing headline today on a one of countrywides websites. This cracks me up because I have been talking about this for some time. It makes me wonder though, if it is presented this way is the consumer happy when they get to the table?
I give quotes to people everyday and I always hear "hmm... your closing costs seem high" and it no longer blows me away when I hear this statement. My closing costs are very low compared to what I have seen out there and I have seen a lot out there. True, I am working to make a living and I do have to charge something for my efforts but I charge a very reasonable, honest, and fair fee. I usually charge my fee on the front end if the borrower can afford to do so, if not I utilize YSP to assist in covering the cost of the work that I will complete for the borrower.
No closing cost loans do not exist. Either you pay the closing cost up front and take an attractive interest rate or you take a hit on rate and pay for the closing over the term of the loan. It makes much more financial sense to pay them up front as they will be much lower than if you pay and extra .5% interest over the course of the loan.
By the way, Here's the footnote from the page that the headline was seen;
++ Affects pricing. With the No Closing Cost Option, borrowers finance the closing costs instead of paying for them at closing. Borrowers who pay closing costs at closing may qualify for a lower interest rate. Some upfront fees (ex. credit report and appraisal) may apply and may be credited at closing. Call for details
PS: I do not charge for a credit report.