Mortgage No Closing Costs Makes Mortgage Take Out Affordable

2007-03-08 10:33:40

( Business )



Mortgage refinance closing costs can be expensive. And if you are one of the many home buyers who cannot afford the closing cost, then you may search for lenders (banks, savings and loan companies, mortgage brokers, mortgage bankers and online mortgage lenders) that offer mortgage no closing costs.

Mortgage no closing costs is a type of loan in which the lenders pay, eliminate or front all closing costs. You should take note that the lender eliminates only nonrecurring closing costs (one time fees paid when obtaining the loan) such as title and escrow fees, appraisal and lender’s fees. These do not include recurring costs (interest, property taxes and insurance) that you will have to pay in your monthly mortgage payment.

Many home buyers forget about closing cost when they take out mortgage no closing costs. Although you don’t initially pay for any nonrecurring closing cost in your mortgage, you should be aware that the costs are still there. Instead of being paid up-front, the costs are built into your mortgage by increasing either the mortgage amount or the mortgage interest rate.

Mortgage no closing costs can be a good option when funds to pay closing cost are limited or you think you will not be holding the loan or the property for a long time and would rather keep the closing money.

The mortgage no closing costs option is also useful when you want to maneuver for a quick release of your mortgage loan. When refinancing into a lower interest rate, mortgage no closing costs becomes an attractive option since you gain immediate savings.

Since this type of mortgage loan offers a higher interest rate or a larger amount of loan, this can be appropriate if you have a regular income but haven’t saved enough money for the closing cost.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.