Lou Auger, Senior Mortgage Banker

  (763) 390-7250   or   (800) 466-3133 ext. 250

    email: loua@summit-mortgage.com

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Summit Mortgage

Lou Auger

Senior Mortgage Banker

Summit Mortgage Corporation

(763) 390-7250

fax (763) 390-7350

 

 

No Closing Cost Mortgages
 

"No closing cost mortgages" are somewhat of a myth.  It's like a "free lunch."  The basic concept behind a "no closing cost mortgage" is that you pay a higher interest rate rather than closing costs.  Many people find this advantages and many people don't.

The following factors need to be considered:

bulletHow much higher will the interest rate be if you don't pay the closing costs (The size of your mortgage makes a big difference with this issue)
bulletHow different will your monthly payment be (The size of your mortgage also makes a big difference with this issue)
bulletHow long do you intend to live in the home
bulletWould you be better off paying off credit card debt than paying closing costs
bulletDo you think there is a likelihood that interest rates will drop enough for you to lower your interest rate further in the future by doing a no cost refinance at a later date?  (The ideal situation would be to do a no closing cost mortgage now and then reduce your rate in the future using a no closing cost refinance, but interest rates would have to drop 1/2 percent or more to make this option viable)

As you can see there is no clear cut rule, so it's best to give me a call and let's see which way will benefit you the most

 

 

 

 

 

 

 

 

 

Copyright © 1995-2005 - Lou Auger - All Rights Reserved
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