Serving Indiana, Ohio, & Northern Kentucky
Finding mortgage lenders with the lowest possible closing cost
Don’t be fooled by low teaser rate! It’s all about the rate of return
Most lenders will quote you a very low interest rate and then charge excessive fees and closing cost. If you have enough equity in your home they will roll these costs back into the mortgage and tell you there is no out of pocket expense. They will add thousands of unnecessary dollars to the mortgage that you will be paying interest on.
We are dedicated to finding mortgage lenders not only with reasonable mortgage rates but the lowest possible fees and closing cost. Yes, you can find lenders with rates at 5.00% or even lower only to find out they charge $6,000 $12,000 in fees and cost.
On 9-17-2009 one of the Monster Mega Banks (actually one the top three mortgage lenders in the country) was quoting 5.125% with $5,156.33 in closing cost. WOW!!!! That's a lot of money.
Would you rather have a rate 5.25% with $275 in closing cost?
Keep in mind the rule is, with the amount you are saving in your payment you should recoup the fees and closing cost to do the loan with in less that 24 months
- 1.Your current mortgage is $200,000
- 2.You have a 30 yr fixed rate at 6%
- 3.The value of your home is $250,000
- 4.Your current principal and interest payment is $1,199.10
First of all for our example let's make some assumptions:
The Monster Mega Bank
$200,000 30YR Fixed rate @ 5.125% = $1,088.97 you save $110.13 per month. With Fees and Cost @ $5,156.33 divided by $110.13 = 46.8 months. It will take you almost 47 months to get back what it cost you to refinance. In other words you really don't start saving until 48th month
The low cost method
$200,000 30YR Fixed rate @ 5.25% = $1,104.41 you save $94.69 per month With Fees and Cost @ $275 divided by $94.69 = 2.9 months. It will take you only 3 months to get back what it cost you to refinance. In other words you start really saving the 4th month.
Summary
It doesn't take a rocket scientist to know your better off with the higher rate and lower cost. Do the math.
If you want to find a lender in your area with the lowest possible closing cost, then complete the FIND A LENDER box at the top of this page and a lender in your area will contact you with in 24 hours.
Don't be fooled by low teaser rate!
It's all about the rate of return
RATES IN THE LOW
5% range
Cost and fees as low as
$275
- NO Points
- NO Origination Fee
- NO Underwriting Fee
- NO Doc Prep Fee
- NO Processing Fee
- NO Attorney Fee
- NO Appraisal Fee (Lender Paid)
- NO Credit Report Fee (Lender Paid)
- NO Closing Fee (Lender Paid)