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Tell Me Your Scenario

Every mortgage scenario is different. Tell me yours and I'll present you with all your mortgage options.

Tell Me Your Scenario

Every mortgage scenario is different. Tell me yours and I'll present you with all your mortgage options.

What is a no closing cost mortgage?

A no closing cost mortgage is simply an option that is typically offered by low-priced mortgage brokers when purchasing or refinancing a home.  It is not some special promotion and is available everyday for consumers that want to explore a no closing cost option.

Simply put, you get credit from the interest rates available to cover all or most closing costs associated with getting a mortgage.

Do lenders really pay my closing costs?

Nope. That’s just marketing. Referring to the three closing cost options below, lenders who claim to pay your closing costs simply only provide you the third option (C). We will provide that same option, but we also want you understand options A and B, then decide what is best for your particular scenario.

No Closing Cost Options

Considering a no closing cost option?

Typically, there are standard closing costs associated with getting a mortgage– such as origination charges, title charges, government recording and transfer taxes.

A no closing cost mortgage is not some special promotion and is available every day. Simply put, you get credit from the interest rates available to cover all or most closing costs.

Here’s an example detailing how much would need to bring to closing with and without closing costs.

This example is assuming seller is choosing the title company and paying for the owner’s title insurance policy and that the seller is an individual that is paying the customary doc stamps on the deed.  The estimated pre-paids assume a property tax estimate of 1.25% of the purchase price and a home insurance policy of $1200 per year.

Minimum and maximum loan amounts apply.  Lender credit towards closing costs will vary based on borrower credit scores.

Borrowers with low credit score may not be able to receive enough lender credit to cover all closing costs and pre-paids.  The instant example is assuming a 740+ credit score for a purchase of a single-family residence. Your cash to close assumes that the appraisal fee and home inspection fee are paid directly to the third-party providers prior to closing.  All loans are subject to credit approvals that must meet Fannie Mae underwriting guidelines.

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Example With Closing Costs

$0
Purchase Price
$0
Downpayment (5%)
$8485
Origination Fees
$8485
Title Charges
$8485
Tax & Govt. Fees
$1330
Estimated Pre-Paids
$1330
Lender Credits
$18744
Total Due at Closing

Example Without Closing Costs

$0
Purchase Price
$0
Downpayment (5%)
$6983
Origination Fees
$6983
Title Charges
$6983
Taxes & Govt. Fees
$0
Estimated Pre-Paids
$0
Lender Credits
$10259
Total Due at Closing