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Tag: Lender-Paid

Free Money: How to benefit from a no-cost or lender-paid closing cost mortgage.

Written by Todd T on . Posted in Blog.

If someone walked up to you and told you that you could save hundreds, thousands, or tens of thousands of dollars without paying a dime you would automatically think it’s too good to be true or that there has to be a catch. Well, it’s true and there isn’t a catch.

A no-closing cost or lender paid closing cost mortgage is about the closest thing to free money that you can get. You benefit by lowering your interest rate, lowering your loan term, lowering your loan term and interest rate, or pulling cash out of your home without paying any closing costs which can literally save you thousands of dollars.

Here’s how it works.

Closing costs exist on all mortgages. That’s a given. But if we negotiate to have the lender pay for them while still improving your interest rate, that’s a win-win! And the savings are immediate. You don’t need to live in the in the house for a certain period of time to recoup those costs. Don’t need the cash from a refinance? It may be smart to do it anyway. If you apply all of the monthly savings to your principal balance each month, you’ll build equity faster and can possibly pay your loan off years ahead of schedule.

A lender-paid closing cost mortgage can also be a great option for borrowers purchasing a home, especially when there are no seller-paid closing costs negotiated into the purchase agreement. While a no-closing cost mortgage might only have a slight impact on the overall payment, it can  save thousands of out-of-pocket dollars that can be used for furnishing the new home or making improvements.

Make sure to ask your mortgage broker if a no-closing cost or lender-paid closing cost mortgage is right for you. And always be sure to work with a mortgage broker who will do the analysis to make sure you’re getting the best mortgage for your needs.

Why use a Mortgage Broker vs. Bank or Credit Union?

Written by Todd T on . Posted in Blog.

That should be a no-brainer. A mortgage broker does your rate shopping so you don’t have to. Plus, unlike banks and credit unions, mortgages are all they do.

Mortgage brokers have access to a wide variety of mortgage loan products that a bank or credit union might not offer. That ensures that you won’t get sold into a mortgage product that meets their needs and not yours.

Mortgage brokers typically can offer more options because they are approved with multiple lenders or banks, so a mortgage broker can pair your application with the lender or bank who has the best rates and fees for your particular scenario.

Another benefit of working with a mortgage broker is that if you do have any issues getting your application approved with a particular lender or bank, a mortgage broker may have alternative options with other lenders or banks that they do business with so you don’t have to start from scratch or walk away from purchasing your dream home.

More often than not, just because a bank or mortgage company tells you no, it’s because they don’t offer a particular loan product or don’t have the underwriting parameters that fit your needs. When it comes to purchasing your dream home, getting the best advice on refinancing, making sure you get the best mortgage that fits your needs, or anything mortgage related, you should always work with a mortgage broker.