No Cost Loans

A “No Cost” Loans allows you to pay no closing cost, no points and no fees. There are many non recurring costs associated with obtaining a loan, from credit reports, appraisal fees, title insurance, loan origination, to notary and sometimes more. These fees can be paid for by means of a slightly higher interest rate.

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Can Closing Costs Really Be Reduced?

You can reduce closing costs by negotiating with lenders and third parties. But you’ll pay them one way or another. It’s just a matter of whether you choose to pay the closing fees in cash, add them to your monthly payments, or have your lender absorb the closing costs into a higher interest rate.

Your state’s first-time home buyer program can provide assistance or housing grants to help pay for closing costs. It also helps to have a military connection, as VA loans limit closing costs and don’t require a down payment.

Maximizing the Financial Benefit of a No Cost Loan

A no cost loan can cost you thousands of dollars more than you’d otherwise pay. But there are circumstances in which wrapping closing costs into your loan isn’t a problem. For example, if you plan on selling your home or refinancing your mortgage loan within three to five years, adding the closing costs to your loan may not be a big deal.

It can be hard to wrap your head around the concept of a no cost loan without professional financial assistance. At Planatek, our specialists can help you get the most out of no cost loans and explain how they can work for you. For expert guidance on options available to you and to learn about closing costs and rates in your area, contact us today.

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Sharing our knowledge and expertise comes natural to us. Our team is friendly, compassionate, and ready to start working with you. Consult with us at no cost to see what we can do for you. Whether you’re just starting out, looking for your perfect vacation or investment home, or planning for retirement, meet with us and we’ll see how we can improve your financial outlook. Contact Planatek Today!