Your Name:
Your Email Address:
To: (Email)
Subject:
Message:
Email Preview:

Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

Best Interest Rate or Low Closing Costs, which is better?
Best Interest Rate or Low Closing Costs?
One of the most confusing areas for consumers in a mortgage loan transaction are closing costs. There are advantages and disadvantages of the highly advertised no closing cost loans. 
First and foremost, there is no such thing as a zero cost loan! No one works for free!
Everyone knows there are costs associated with getting a mortgage loan; appraisal, credit reports, state taxes, county recording fees, title companies fees, lender fees, escrows, and more. Someone has to pay these fees, and it is always YOU. How you pay them is you need to understand.
In a no lender fee or no closing cost mortgage loan, the lender simply uses "negative" points to offset your costs. For example by selecting maybe a 4.75% interest rate versus a 4% interest rate, you can reduce (or offset through interest rate) most, if not all of your closing costs.
By choosing this option, it appear as if you saved thousands in closing costs. GREAT! But while lower costs always sounds good, you now have a significantly higher interest rate! OK, now what?
No matter what anyone says, a no closing cost, or no lender fee loan is NOT ... more

__________________________________________________
Are you on The Rain? Grow Your Network!




Spam prevention