Many advertisers offer loans with no closing costs: Is this true? Can you obtain a loan without paying any costs?
Well, yes you can, but you may be paying for it with a higher interest rate!
There are costs associated with making a loan, such as underwriting, appraisal, credit report, escrow, title insurance and recording. All of these people expect to get paid for their service, they are not doing it for free, and they will get paid.
If you choose to do a no closing cost loan, you will likely have a higher interest rate. The higher rate translates to a higher price for the mortgage-backed security, which means there is more money available to pay all of the individuals involved in making your loan.
As a consumer, you have to decide whether making a payment at a higher rate is better than making the lower payment and paying the costs out of pocket. We can help you with this decision.
We offer a variety product services, ask us how we can assist you today:
Counsel Mortgage Group®, LLC
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