Do They Really Exist:
Have you been looking for that seemingly elusive “no-cost” mortgage rate in the State of California? And I mean the true “no-cost” mortgage loan where all lender, and third party fees are covered.
At JB Mortgage Capital, Inc. we offer a true “no-cost” loans even for those with less than perfect credit. Our no cost mortgage rates have no hidden fees, no junk fees, and no lender or 3rd party fees of any kind being charged directly to the borrower.
Generally the best loan programs for a no cost mortgage rate in California are on a fixed rate loan program (such as a 30, 20 or 15 year fixed) however there are some options on the adjustable rate loan programs as well.
Understand The Facts:
It’s important that you understand what a “no-cost” loan means.
A “no-cost” loan means you the borrower are not being charged directly for the costs as the lender issues a credit to cover the costs being charged. To obtain the lender credit you will have to take a higher higher interest rate to cover those fixed costs (which generally include underwriting, appraisal, title, escrow and recording). You should not think that a “no cost” loan means everyone is working for free, it simply means you’re accepting a higher rate to avoid paying directly for costs associated with closing your loan.
It usually works out where the rate increase, to obtain the “no-cost” mortgage, is only slightly higher than the rate in which thousands of dollars in fees are charged.
We Mean Zero Cost:
Many lenders claim to have a “no-cost” mortgage rate however when you move to close there are fees. Ugh! What happens is the loan officer is not being up front; and not clarifying if the “no-cost” mortgage means not a single penny in fee or if it means something else.
With some lenders a “no-cost” rate means the lender is not charging an origination fee and/or an underwriting fee but you’re still paying third party fees. Other lenders claim they offer a “no-cost” rate however they still charge a processing fee and third party fees.
That does not happen at JB Mortgage Capital, Inc. When we say “no-cost” we mean not a single penny for lender underwriting/processing, points or third party fees (as mentioned to cover these fees you are accepting a higher rate) are being charged directly to you.
Be sure to connect with Loan Officer Kevin O’Connor on Twitter @Rates01
Obstacles To Consider:
Not everyone qualifies for a no cost mortgage; and not all loan programs qualify as well. Potential roadblocks to obtaining a no-cost loan are:
- A low loan amount
- Non-owner occupied properties
- Transactions that include a subordination
- Multi-unit properties
- High LTV cash out loans
It’s a bit easier to get a no cost mortgage on a refinance than it is when you’re buying a home. Also loan amounts below 200k can present some obstacles as well. The “sweet spot” for a no cost mortgage rate is excellent credit, 40% equity, primary residence, no cash out and a loan amount above 280k.
JB Mortgage Capital, Inc.:
If you’re in the market for a “no-cost” rate; a true zero cost rate, please be sure to give us a call at 1-800-550-5538. We have a top rating with the Better Business Bureau, a top rating with the Business Consumers Alliance and we offer many different options when it comes to a zero cost mortgage rate. We provide a no cost/no obligation quote and we’ll be happy to answer any questions you may have.