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How much does a "no-cost" home loan really cost you?

By
Real Estate Agent with KW Carlsbad BRE 01506738
Many banks are promoting their "no cost" or "no fee" home loans and everyone has heard that there's no such thing as free.  These no cost home loans really don't offer much advantage.  You will pay for all of the traditional fees associated with obtaining a loan in the long run through an increase in your interest rate.  Additionally because most loans aren't procured without these fees you are losing the tax deductibility of the origination fees that are normally charged when you obtain a home loan.  They claim no fee but does it really save you money?  Not in my opinion.
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Rey Gallegos
Supreme Lending (NMLS ID #2129) - Las Vegas, NV
FHA, VA, Home Loans Las Vegas, NV

Very true Kyle!  People really don't know that they are paying for these fees one way or another.  Its up to us to keep people informed!

Jul 23, 2007 07:41 AM
Provadus Home Loans
Provadus Home Loans - Marietta, GA
Technology bringing you home.
The truth is told.  Well done.  No one works for fee in this business, they pay one way or the other.  People do not read the fine print from the commercials.
Jul 23, 2007 08:11 AM