There is HOPE as NO CLOSING COST Mortgage do exist certain originators such as Dustin Carlson are still able to do a True "NO COST LOAN" where there are not any closing costs Many people feel as though they are being taken "hook, line and sinker" when they are told they can qualify for a "NO COST MORTGAGE LOAN." There are many cases where loan officers try to use jargon of "NO Cost" to entice consumers when really the loan officer intends to add the closing costs to the new loan and increase the principal balance this should be referred to as a "no money out of pocket" loan BIG Difference!
out of pocket and NO closing costs added to the loanthis is a program few people offer but it is still available for many homeowners and can be VERY beneficial.
This program may have a slightly higher interest that the "lowest advertised rates" but it is often the best option for many consumers.
Here is an example of how it is beneficial for you to do a no/low cost loan:
This example will assume a $250,000 mortgage payoff on a 30yr fixed loan (taxes and insurance are not included in the calculation as they are not determined by the loan but instead by the insurance company and local government).
Option 1: Traditional closing costs of 1% origination and all third party fees added to the loan. This would equate to a new loan balance of approximately $255,380 and a principal and interest payment of $1293.97 per month at 4.5%.
Option 2: No closing cost loan with no closing costs or third party fees added to the loan or paid out of your pocket. This would equate to a new loan balance of approximately $250,000 and a principal and interest payment of $1323.02 at 4.875%.
ANALYSIS: The difference is loan balance is 5,380 and the monthly difference in savings is 29.05 per month.
At a savings of 29.05 per month it would take 185 months (15.4 yrs) to recover the $5,380 that was added to the loan amount for closing costs.
Now is the time to start saving money every month and take advantage of the NO CLOSING COSTS program while it still exists. You can contact Dustin Carlson at Dustin@FreeMyDollars.com or 888 201 1332 or 907 903 1269