Is there actually a loan out there that has NO closing cost? A common myth within the mortgage industry is that there is something called a no closing cost loan. Despite what some say, this is not true. Regardless of whether there are lender fees or not, you still have costs that you must pay when you get a mortgage. These costs are for things like taxes, appraisals, title work or legal work. Whether or not your lender is charging you anything, those other entities still need to be paid.
Many times, companies will advertise no closing costs, because they are raising your interest rate and making way more commission on your mortgage in order to pay those costs on your behalf. So, you should “know before you owe” whether or not it is worth it for you to pay the closing cost and have a lower payment for the next 30 years, or to go ahead and make the higher payment.
The bottom line is, if it sounds too good to be true… it is. By giving us a call at The Truth About Lending, we will be able to really provide you with the TRUTH about your situation.
