Financing in Louisville>Question Details

Naynay, Home Buyer in Louisville, KY

Where is the best place to apply for a "No Closing Cost" home refinance loan in KY?

Asked by Naynay, Louisville, KY Fri May 20, 2011

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Joel Lobb’s answer
No Closing Cost Mortgages in Kentucky
No Cost loan program there are no points, no origination fee or loan-related costs of any kind, guaranteed.
All closing costs including appraisal, credit report, lender fees, settlement fees, title insurance, recording fees, courier fees and any others are paid Kentucky Mortgage Lender. These costs are not “rolled into” your loan balance. You will not be surprised by hidden costs at closing.
We Pay These Mortgage Fees so You Don’t Have to:
Origination fee
Appraisal fee
Application fee
Attorney fee
Title insurance fee
Recording fee
A No Cost loan Kentucky Mortgage can result in bigger savings and better results for you, but remember that each borrower’s needs and situation is unique. A No Cost loan may not be your best mortgage solution. The No Cost loan program is not available to all borrowers or on all loan programs.

What’s the Catch?
No catch! There is a trade-off which you need to make sure is to your advantage. The rate on a No Closing Cost loan is slightly higher than the rate on other loans. Because the loan has a higher interest rate the lender pays us a commission. We use this commission (called the yield spread) to pay all the loan-related costs.
Since we are paying all the costs we are motivated to keep loan costs as low as possible and operate very efficiently, which in turn allows us to offer you lower rates.
How do I Know if a No Cost Kentucky Mortgage is Right for Me?
Do you know anyone who has paid off a Kentucky mortgage? Consider how frequently you or your neighbors move. The national data shows that the average age of a loan at the time of refinance is 3.2 years. If you pay loan-related costs with a normal mortgage and then refinance or payoff your loan in less than 6 years, you will be throwing money away.
To decide whether a No Cost loan is right for you, the first and most important question is what do your long term plans look like? Will you be in this home another 5 – 6 years? If rates drop will you have this mortgage for another 5 – 6 years?
The truth is that interest rates change as often as stock prices. Interest rates follow the bond market and can change just as rapidly. In the last year the mortgage market has changed more than a full point. Our customers who did No Cost loans at the beginning of the year were refinancing to lower rates by the fall.
Some of our clients have refinanced numerous times at no charge. Had they paid points or closing costs, they would have lost that money because rates dropped. Paying costs can be like flushing money down the drain. We have clients that refinanced 5 times — had they paid closing costs, they would have lost over $19,500 by now.
Fill out my free mortgage application below to see if it makes sense for a no closing costs mortgage loan in Kentucky today!~
2 votes Thank Flag Link Fri Aug 24, 2012
You will pay a higher rate by getting a no closing cost loan. The spread in the rate between a regular closing costs loan and no closing costs loan is usually around 50 basis points or .50 percent rate. It will depend on your credit score, loan program, down payment, and loan size too.

Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell
502-813-2795 fax
jlobb@keyfinllc.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
http://mylouisvillekentuckymortgage.com
2 votes Thank Flag Link Wed May 16, 2012
No closing costs sounds good, but you end up paying for it in the end. I love when lender say they don't charge anything "no closing costs", but fail to mention the other costs involved such as title, escrow & impounds.. If you are short on money for closing costs you can ask both your lender (yes, I said lender) and the seller to assist with closing costs.
0 votes Thank Flag Link Wed May 16, 2012
Hello,

It would be best for you to get pre-qualifyed first to get an accurate quote. Our no 30 yr fixed no closing cost rate in Louisville, KY today 4.625%; 5/1 ARM is at 3.875% with no costs; these terms would be available to you with 740+ fico score, <=90LTV, single family home.

Please contact me if I can help you further.

Thanks,
Andrew
aluett@wintrustmortgage.com
0 votes Thank Flag Link Fri May 20, 2011
I would be more than happy to discuss options with you. I can provide you with estimates to show a no cost and a typical cost mortgage, so you can compare.
0 votes Thank Flag Link Fri May 20, 2011
Russell is correct - lenders (such as myself) will be able to do this but you'll be paying a higher interest rate. If you have sufficient equity you can get a lower rate by rolling in the closing costs into the loan. It's simple to calculate which is the best choice financially... of course we can only advise, the decision is up to you as to what works best for your situation.

Tom
0 votes Thank Flag Link Fri May 20, 2011
I agree with Russell, in addition to his answer they make more sense the higher the loan amount and the shorter the holding period. The type of loan used is also a factor. My number is 753-4127.
0 votes Thank Flag Link Fri May 20, 2011
You can apply at with any mortgage lender to try to get a no closing cost refinance. Brokers will not be able to offer you this option anymore.

The big item that will decide if you are able to get a no closing cost refinance is the loan amount you are going to be requesting. Lender make money in two ways. One through closing costs and two through the rate you are getting. The higher your rate the lower your closing costs can be. Usually it is in your best interest to pay some closing costs if you are going to be staying in the home for several years.

If you have any other questions please feel free to give me a call (502) 244-4344. It will be my pleasure to help you in any way I can.
0 votes Thank Flag Link Fri May 20, 2011
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