September 2nd, 2018 | Interest Rates
At Advanced Funding Home Mortgage Loans, it’s our mission to get you the best mortgage option for your situation. Our mortgage brokers are trained to spot the details that might make a certain type of mortgage or refinance more prudent for you and your family, and to guide you through every step of the loan process.
One of the mortgage types that is often a good fit is a no-cost mortgage. This option is where closing cost and fees are paid by the mortgage company by rolling them into your interest rate and monthly payments, allowing you to get out the door for much less in upfront costs. This is often great for people planning to move or flip a home within five years. There are several specific benefits to a no-cost loan, let’s take a look.
The absence of upfront closing costs and various fees means you need to bring less cash to the closing table. This is great for people who may have a high monthly income and enough funds to afford a solid payment, but not much liquid cash on hand for both a down payment and closing costs. Closing costs can run into the thousands for most mortgage situations, so this is a major benefit for many people.
One of the primary benefits of this extra money is the potential for a higher priced home. No closing costs means you have more money available for the down payment and future monthly payments, which allows many people to get into a larger home than they had anticipated. It’s not uncommon for this lump sum to make the difference between a great home and a dream home.
No cost mortgages can often be perfect for many first-time homebuyers – people who often don’t have furniture or other accessories in the quantities truly needed for home ownership. Things like refrigerators, washers, dryers, and dishwashers don’t come cheap, and if these are expenses you’re considering along with a mortgage, a no closing costs option could keep your finances in the proper order.