Real Estate Culture
  • Home
  • What is My Home Worth?
  • About
  • Contact

Real Estate is a LIFESTYLE

  Real Estate is indeed a lifestyle.  From contemporary layouts & interior design/decor, the rise and fall in economic markets, turn key and rehab properties - to know & understand the grit of real estate is to love what it represents.  Home.  Value.  Wealth.  Security blanket.  Personal accomplishment.  
Enjoy the information on this site, and refer your family and friends to indulge in Real Estate Culture!

Is a Mortgage With No Closing Costs Right For You?  #homeownership #realestate #finances

7/24/2017

0 Comments

 
Picture
Source:  Yahoo Finance

A mortgage isn't free - there are fees associated with getting the loan.  Those closing costs usually total thousands of dollars.  Besides writing a check to pay those fees at the closing table, there's another way to pay them when you refinance your mortgage:  by adding them to the loan amount.  The result is called a no-closing-cost refinance.  Many lenders offer them.  However, you'll probably have to accept a higher interest rate over the life of the loan.

Making Sense of the Story:

- No-closing-cost mortgages are attractive to borrowers who don't have the cash to pay fees upfront.  Waiving the closing costs may be the ticket to getting a mortgage for a new home or a refinance.

- If you don't plan to stay in your home for more than five years, a no-closing-cost mortgage also makes sense.  With a traditional mortgage, it could take more than five years to recoup the closing costs.

-  The slightly higher mortgage rate associated with a no-closing-cost mortgage is still likely to be less expensive over five years than what you would pay upfront in closing costs.

- Paying a slightly higher interest rate to forgo closing costs may also make sense if you need the cash to do renovations on your home.

- If you plan to stay in your home more than five years, then a no-closing-cost loan likely will end up costing you more than a loan with closing costs.  That's true whether you're taking out a mortgage for a new purchase or refinancing an existing loan.

- Typically, you'll break even on your closing costs in a few years.  Going with a no-closing-cost loan saddles you with a higher interest rate over the rest of the loan.  That could end up costing you a lot more than the upfront fees if you keep the mortgage for a long time.

Check out the full story here:
https://finance.yahoo.com/news/mortgage-no-closing-costs-100000844.html


0 Comments



Leave a Reply.

    Archives

    December 2018
    July 2018
    February 2018
    January 2018
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016

    Categories

    All

    RSS Feed

© COPYRIGHT 2015. ALL RIGHTS RESERVED.
  • Home
  • What is My Home Worth?
  • About
  • Contact