Whether or not this type of program is right for you depends on your individual situation. A no-cost mortgage in Utah is generally a good option if you are not planning to stay in your home for more than five years. Refinancing into a more traditional mortgage and paying the closing costs and fees is sometimes the better option for those planning on staying in their home and not refinancing for a longer period of time.
Whether you're buying a new home or refinancing to reduce your interest rate, consolidate debt, or any other reason, there are costs associated with a home loan. A no-cost loan allows you to reduce or eliminate the costs in exchange for a higher interest rate. However, there are definite benefits to a no-cost loan.
No out-of-pocket costs
Have a lower loan amount
Begin seeing savings immediately
No need to calculate the time needed to break even
While there are many factors to determine how much savings you’ll get from this option we recommend exploring all of your options before making a final decision. Let one of our mortgage brokers discuss your loan choices with you by contacting us at 801.272.0600.