How Do No Points No Closing Costs Loans Work?
The way a no points no closing cost loan works is that for a slightly higher interest rate, you can refinance your loan for absolutely no money out of your own pocket. That means we pay for your escrow, title, appraisal, credit check, and all the other fees associated with a loan. This also means that if your current loan balance is $300,000 it will be $300,000 after your refi, except you'll have a lower rate. The way we're able to do this is because we get a rebate from the lender (approx. 2.5%) and from this commission, our company pays for all the closing costs associated with your loan; thus our concept is volume; whereas our competitors make the full 2.5% on average and charge the borrower closing costs. Additionally, because of the nature of the no points no cost loan, we can refinance ALL of our past clients every time the rates drop, since it never costs anything to refinance them again, so we usually have a lot more business in repeat customers, as well as referrals from past customers. On average, our customers have refinanced 4 times with us since 2002.
The thing with paying points and costs for a refi is that it'll add on to your new loan amount, so if you currently owe $300,000 after the refi with points and closing costs you might have a lowered your rate but your new loan balance could be around $308,000, which is $8,000 you need to make back from the lower interest rate before you even break even to your old loan amount. For example if you saved $100 a month in payments but added $8000 to your loan, that’s 80 months ($100 x 80 = $8,000) to break even before you start saving ANY money. Also because of the nature of this if you resell your home before you break even you will have lost money by refinancing, and if the rates do go down after you refi you can’t refinance again because it'll again add even more to your current balance if you pay closing costs again.
Want to know more? Why not fill out a FREE Loan Cost Analysis form and see if we can start saving you money every month, or contact us toll-free at (800) 811-7709.
Why Coastiera Properties & Solomon Financial will Help Me Sell My Home Faster
Thinking of selling your home? Not sure what to do? Our Seller Services Guarantee listing program gives both the benefits of a full realtor service at assistance service prices? Our guarantee assists, you, the seller to ensure that if we do not do our job in marketing your home, you can cancel the California D.R.E. contract if we do not fulfill the terms of the contract. Ask your realtor if he provides this EXTRA service. We are certain that we can outperform anyone in the sale of your home, we went the extra mile to put this EXTRA seller contract together for you. The benefit is 100% for you.
We are currently the ONLY company in California that does media advertising for this and for good reason - because we are one of the only companies who can. By being able to offer both home loans and realty services, our dedicated team of realtors can help you sell your home quicker since they are also able to pre-approve buyers on the spot, as well as offer title, escrow, and loans at competitive rates. If you are a buyer and you see a home driving down the street with the real estate sign saying - "Ask us how to purchase this home for no points, no fees & no closing costs" - would you write that number down? That is a major reason why our homes sell quickly. In fact, we have sold homes in 1 day because of these extra benefits. Our concept is quantity as well as quality, we don't take as much of a commission cut as other realtors, but because we can sell homes quicker as well as help our loan department generate leads, we are able to benefit more from each sale than normal realtors and because of this we are also able to pass the savings onto the seller.
We provide all the services that you would expect from any realtor, as you can see from our program flyer.
Interested? Why not first see how much your home is worth, or consult a realtor toll-free at (800) 811-7709.