No Closing Cost Mortgage and Refinance [mortgagegoal.blogspot.com]
The biggest U.S. mortgage lenders, whose first-quarter earnings were buoyed by gains on home-loan refinancings, are raking in more profits as record-low interest rates and government efforts prolong the boom. Banks Pad Profits as US Prolongs Refinancing Boom: Mortgages
Everyone wants to save money in today's difficult economy and with real estate it is no different. Home buyers are willing to consider almost any kind of mortgage product and financing scheme that can perhaps save them a bit of cash over the long haul. The trouble is that when the demand for such products goes up often times the market is flooded with all sorts of weak and ridiculous mortgage products that ultimately have trouble delivering on what they may be telling the market they are supposed to do. The no closing cost mortgage, and the no closing cost refinance are two of these kinds of mortgage products that do not deliver on what they claim they are able to do and for this reason they should be avoided at all costs by home buyers.
So how do the no closing cost mortgage and the no closing cost refinance not deliver on what they promise? It is really not that complicated, and in essence these two home loan products are supposed to save their customers money when in reality they may actually cost the person more over the long-term.
Both no closing cost mortgages and no closing cost refinance loans are supposed to come with no closing costs and should thus save the buyer money if they choose one of these loan products over the more standard home loan products that do require the home buyer to pay for closing costs.The reality is that although most of these sorts of home loans do waive the closing costs, they in actuality cost the person more via higher interest rates that the person may or may not know about. Most of the lenders that provide these sorts of loans will eliminate the closing costs but in compensation they usually raise the person's interest rate by a quarter to a half a point without even telling the person.
If you do the math for a conventional mortgage this means that the individual is going to have to pay more over time and this will typically result in the person paying more than they would have had to if they paid their closing costs instead of having the higher interest rate. This is why you should stay away from these no closing cost home loans and in the end you shouldn't even thinking about applying for what are ultimately scams. Recommend No Closing Cost Mortgage and Refinance Topics
