26 Sep 2007 07:20 am
Lenders Offering No-Cost Mortgages
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Most borrowers are not aware of the [tag]no-cost mortgage option[/tag] currently being offered by some lenders. The loan officers and [tag]mortgage brokers[/tag] with whom they deal are unlikely to volunteer the information because no-cost loans are easier to comparison shop. If the borrower requests a [tag]no-cost mortgage quote[/tag], they will comply, but the quotes are based on cost estimates that can be far off the mark. Borrowers can roll their own no-cost mortgage online. They do this by selecting an interest rate that carries a rebate large enough to cover the settlement costs. This requires that they have access to the complete range of rate/point combinations offered by the lender, as well as the settlement costs. |
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