What are the correlations with the interest rate and the closing costs?
The higher the closing costs, the lower the interest rate. The higher the interest rate, the lower the closing costs. The interest rate and the origination fee are the two areas where a bank, lender or broker is able to make a profit. If you request a no point loan or hear an add for a no closing cost loan, you will pay a higher interest rate. You will most likely pay a premium on the interest rate along with some type of origination fee.
