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No Closing Costs Options / Low Cost Options For Mortgage Refinancing (are they really such a good deal?) From a Popular Online Lender that specializes in 5 year ARM's: From the site 11/28/2007 Closing Cash Saver Refinances and Purchases Closing Cash Saver(CCS) loans allow you to avoid non recurring closing costs by selecting a slightly higher interest rate. When you choose a CCS loan you receive a rebate that will pay your non recurring closing costs, allowing you to close with less money up-front. Closing costs that are commonly paid by CCS loans include title and escrow fees, appraisal, lender fees, credit report fees, and other expenses which are non recurring over the life of the loan. As with all loans of this type (sometimes incorrectly referred to as "no-cost" or "no closing cost" loans) the prepayment of recurring costs will still be required at closing, regardless of the lender you use. With home financing there are usually a variety of interest rate and point combinations available to the borrower for each product or loan type. While some borrowers prefer a lower rate immediately, others prefer minimizing their up-front expenses. For these borrowers, the CCS option is preferable despite the higher interest rate, because it requires the smallest investment at closing. CCS loans can be used for both refinance and purchase transactions. In general, a CCS loan is a good strategy if you plan to keep your loan for up to three years. Beyond that you should consider paying some costs out of pocket to get a lower rate, since over time the lower mortgage payment will offset the additional up-front costs. CCS Refinances CCS loans are most commonly associated with refinances. A CCS refinance is the quickest way to generate immediate interest rate and payment savings with no up-front investment in closing costs. For instance, imagine that a borrower is currently at 8.5% on a 30 year fixed rate loan and is interested in refinancing at a lower rate. If this borrower chooses to refinance using the CCS method, it doesn't matter when they lock in so long as they immediately save money by refinancing. For example, with an 8.25% CCS loan, their payment would decrease right away. And should interest rates continue to decline, the borrower can simply refinance again to obtain additional savings. We wonder though how many people do you think have a rate 8.5% or higher? From the site 11/28/2007 Looking to refinance your existing home and reduce your out-of-pocket costs? Well, at " " we’ve reduced these lender closing costs to just $395. The lender fees cover: Escrow fees
These are the fees not covered in the $395 Flat Fee: Prepaid interest -
This amount represents interest paid to the lender for the number of days
remaining in the month you close. (This amount will change based on the
final date of closing.)
*Flat Fee available only on owner occupied single family residential properties. Minimum loan amount is $100,000. On purchases, the $395 fee includes the credit report, appraisal, courier, flood determination and flood (life of loan); borrower is responsible for new loan interest costs, outstanding property liens, rate lock fee, buyer's title insurance, private mortgage insurance, property insurance, association fees, seller fees, certifications, title fees, escrow fees, interest fees, recording fees, settlement/closing fees, attorney fees, survey fees and taxes. In NY, CEMA fees are paid by the borrower. Application fee in New Jersey. Loan Processing Fee in Iowa. Service Fee in Pennsylvania. Loan Origination Fee in Washington. Subject to underwriting approval. Not all applicants will be approved. Full documentation & property insurance required. Loan secured by a lien against your property. Terms, conditions & restrictions apply. For example, as of 09/11/07, a $250,001 loan amount with a $395 Flat Fee and financed at 6.875% (6.891% APR) for 30 years would result in 360 monthly principal and interest payments of $1,642.33. Your rate and term may vary. Call the number above for details. But wait, there's MORE: This is the fine print regarding their 30 year fixed Interest Only for 10 years option. Remember, this is the same company offering a low "Flat Fee" closing offer. Must not be an option here... Points, Lock in Fee, etc. First the sell: "How do you combine a low monthly payment with a 30 year fixed rate loan? Impossible you say? Well, " " has created a 30 year loan that allows you to pay only the interest for all or part of the first ten years and keep the original low fixed rate for the full 30 years of the loan. Smart today. Smart tomorrow. Pay interest only if you
desire for the first 10 years - on any, or all, payments.
Then the fine print: Fees & charges apply. Subject to underwriting approval. Not all applicants will be approved. Minimum credit score of 731 required to be eligible for above rate. Full documentation & property insurance required. Loans secured by liens against your property. Consolidating debts may increase the time and /or the total amount needed to repay your debt. Taxes & insurance extra. Terms, conditions & restrictions apply. For example, as of 10/10/07, a $250,001 loan amount financed at 6.250% interest (6.526% APR) for 30 years, with 2 point discount, would result in 360 monthly payments of $1308.09. Your rate and term may vary. Lock in fee required to secure rate. Recent rate but subject to change without notice. Rate available on loan amounts from $250,001 to (A) $417,000 (contiguous US) and (B) $625,500 (AK and HI) on owner occupied single family residential properties. Call for details. Must we go on? You get the idea... check with us today. Let's compare apples to apples. On Line Loan Inquiry form - You may remain anonymous if desired, plus No S.S. Number or Bank Account info is needed to get started . Download an actual Loan Application and fax it to us. Our fax number is on the bottom of page 4 of the loan application. You may remain anonymous if desired, plus No S.S. Number or Bank Account info is needed to get started on your ARM Refinance. Fix Your ARM Today and sleep better at night.
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