How Do No Points No Closing Costs Loans Work?
The way a no points no closing cost loan works is that for a slightly higher interest rate, you can refinance your loan for absolutely no money out of your own pocket. That means we pay for your escrow, title, appraisal, credit check, and all the other fees associated with a loan. This also means that if your current loan balance is $300,000 it will be $300,000 after your refi, except you’ll have a lower rate. The way we’re able to do this is because we get a rebate from the lender (approx. 2.5%) and from this commission, our company pays for all the closing costs associated with your loan; thus our concept is volume; whereas our competitors make the full 2.5% on average and charge the borrower closing costs. Additionally, because of the nature of the no points no cost loan, we can refinance ALL of our past clients every time the rates drop, since it never costs anything to refinance them again, so we usually have a lot more business in repeat customers, as well as referrals from past
Related Questions
- Must all loans in which the points and fees exceed 5% be classified as High Cost loans pursuant to the Illinois High Risk Home Loan Act?
- if seller pays closing costs, will that include pre-paid taxes, insurance, and points?
- What are points and must I pay them? Tell me about Zero Point/ Zero Fee loans?
