No closing cost? No points? Be careful Get informed!

There are many ways of obtaining a loan. One way that has been very popular is paying no closing cost and no points. So you think!

When you apply for a loan, and you decide that you don’t want to pay closing cost or any point to the broker, all these costs are simply added to your note rate. In turn, you will end up getting a higher interest rate than you could have obtained, if you would have paid closing cost and/or points. If you don’t have money to pay for closing cost and/or points and you don’t plan on living in this property for many years, then it might be in your best financial interest not to pay closing cost and/or points. It all depends on your present and future economic situation as well as your plans for staying in your home for the future. This is my professional opinion.

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One Response to “No closing cost? No points? *Be careful* Get informed!”

Federal Reserve Rate cuts: How Will It Impact You and Your Money? : San Jose-Santa Clara County Real Estate UNCENSORED on October 10th, 2008 12:26 PM

[...] But don’t make a decision to refinance or buy a home simply because the Federal Reserve cut rates, make that decision base on your individual situation. If you decide to refinance or buy a home, make sure that when you are sitting at the table with your mortgage broker, he/she explains to you the ins and outs, the pros and cons of every mortgage loan available to you. Don’t be afraid to ask, ask as many questions as possible, ask “why” your mortgage broker has chosen a certain loan over others and “how” he/she will be paid including the YSP because remember there are no free or low cost mortgages. [...]

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