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.
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.
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.
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.
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 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.