Pay now, or Pay later: Higher rates favor the bank.
If you were looking for "the trick" or "insider tip" or secrets, that's it. Anyone who wants to work for charity probably joined Greenpeace and is living in a tent. Mortgage brokers and banks are in the business of making money. Good ones do a ton of volume and have good systems so they don't need to overcharge the few clients they have.
Lately, most of the "no point, no cost" loans are not good for the borrower, which is why the bank tries to make it appealing on the fees - to entice people into taking an otherwise bad loan. They have their place though - for short term strategies, when your time to recoup isn't there. The challenge? 99.5% of these loans carry a "commitment period" a.k.a. "prepayment penalties" - which negates the short-term benefit. Don't worry, you're in good hands - we know how to get around any prepay.
The
No-Cost No-Point loan:
Do we magically get Uncle Sam
to waive his $59 County Filing charge? Of course not! What we do is charge
a higher rate on the loan, which makes it more valuable to banks. They
LOVE customers who have 9% mortgages and never refinance- because they're
making more money! By the way, if you have one of those, don't wait for
the bank to call and ask for you to refinance...they hope you never do.
In short, a loan at a higher rate is more valuable, therefore the bank
buys the loan from us for enough money to cover the closing costs and
us to make some money.
Anyone who quotes
rates or fees without knowing your
situation and goals is either incompetent or lying.
Let's
keep it simple - answer these 5 questions and we'll be let you know
the Benefits I can offer as well as the Cost breakdown
- for YOUR unique situation and needs. |
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