What is a no cost loan?

A true no cost loan means you pay no points, no fees, and have no fees wrapped into your loan. You will only be responsible for your own interest, taxes, and insurance due.  In most cases you will still see fees shown on your estimate, but there will be a lender credit which offsets them.

How do you get paid?

We are paid directly by the bank at a predetermined percentage.  Your mortgage product, rate, or terms have no impact on this percentage.

Why can you offer lower rates compared to big banks or mortgage companies?

Our rates are generally lower for the very simple reasons that we typically make less per mortgage transaction, we keep our overhead low, and we can often negotiate better rates because of the quality and volume of our mortgage business.

What determines my interest rate?

Your interest rate is determined by a combination of factors including credit, equity, income, assets, liabilities, loan amount, program, and cost structure.

Isn’t interest front-loaded?

This is the most common misconception among mortgage buyers. Your interest is not front-loaded. You pay more interest at the beginning simply because your balance is higher.

Monthly interest = balance x interest rate / 12.

Doesn’t refinancing mean “starting over”?

Only if you want it to. We recommend you keep making your current payment on the new loan – this will enable you to pay the new loan off faster and save tens of thousands of dollars while you’re doing it.

Doesn’t lowering my rate reduce my interest deduction?

Yes, but don’t forget, your savings will far outweigh the loss in deduction.