Financing Your Hamilton Mill Home With a “No-Fee” Mortgage - But Is It a Good Deal?
Related Posts: Real Estate, Real Estate Deals
hi
Is a “no-fee” mortgage a real deal? When a mortgage company offers to loan you money without any fees to write the new mortgage, who wouldn’t listen. But is it a good deal? What’s really happening in this case is the interest rate you’re charged on the new mortgage is going to be higher to pay for that no-cost loan. The mortgage company then uses the additional interest it earns from the higher monthly payments that you are making on your new mortgage to pay for the costs of that loan.
What you want to determine: How long do you plan to own the property and the interest rate you will be paying. This will help determine if paying the higher interest rate will work out in your favor.
What you want the lender or mortgage planner to help you determine: What is the total cost of the no-fee loan when compared to a typical loan where you pay closing costs.
When choosing a mortgage loan, it is always wise to base your decisions on sound financial principles, not the belief that “I got this loan without costs.”
The no-fee method can prove advantageous in some situations, but you should consult a mortgage planner to get the real scoop.
For more information, call Chuck Walden or send email to cwalden@signaturelendinggroup.net
