No point loans with origination fees….how can that be?

Similar to when this was originally written; this is becoming more common than it used to in the mortgage industry.  Some loan officers love to say that they are proving you a “no point” loan and still charge loan origination fees up front (what they are referring to is only discount points charged by the lender they work for). In fact when a potential client let’s me know they received this to-good-to-be-true “no point” mortgage rate; we always discover that there are upfront origination fees (usually thousands and thousands of dollars added to the mortgage).   I’ve also seen mortgage lenders advertising no point loans but having origination fees listed in the small print.  When I started in the industry nearly 15 years ago this was VERY common with mortgage loans and then it seemed to shift didn’t incur all that much. mortgage interest rateHowever over recently I have seen/heard numerous “zero point” quotes in which the lender was charging a 1% or even 2% mortgage origination fee.

Everyone wants the best California mortgage rates and the best California mortgage rates can only be obtained if you work with an honest, upfront and well respected mortgage lender.  Working with an unknown mortgage lender and/or a lender with a bad reputation with an organization like the Better Business Bureau or the Business Consumer’s Alliance is a major risk.  It is extremely important that you keep an eye out for this as it’s something that could cause a lot of issues if you are seeking a true zero point loan.  We do not confuse the two:  discount points or loan origination fees….we include them, if our client is requesting to by down the rate, as one so that our clients are not confused. (this post was updated in 2017.

If you are interested in refinancing your current mortgage or purchasing a new home please give us the opportunity to earn your business.  We have a top rating with the Better Business Bureau, a top rating with the Business Consumers Alliance and we always provide a clear quote for our clients to understand.  We don’t hide fees or avoid disclosing the true cost of the mortgage.  On top of this we have a time tested system in place to provide you with a great experience and we always target 100% costumer satisfaction.  You can reach us directly at 1-800-550-5538 or fill out the request a quote form on the front page (or side pages) as well.