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 â€œrolled intoâ€ your loan balance. You will not be surprised by hidden costs at closing.
We Pay These Mortgage Fees so You Donâ€™t Have to:
Title insurance fee
A No Cost loan Kentucky Mortgage can result in bigger savings and better results for you, but remember that each borrowerâ€™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.
Whatâ€™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 â€“ 6 years? If rates drop will you have this mortgage for another 5 â€“ 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 â€” 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!~
Joel Lobb (NMLS#57916)
Senior Loan Officer
Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*