NO-COST LOANS

Refinancing at today's extremely low interest rates can prove to be a tremendous savings. But with increased closing fees and stricter underwriting guidelines, how do you know whether refinancing is right for you?

One sure way to guarantee savings is to use a No-Cost Loan. A No-Cost Loan is designed to eliminate closing fees that often run around $2,000 ---- and even as high as $5-6,000 with some of the new government refinance programs such as the Home Affordable Refinance Program (H.A.R.P.). By using a No-Cost Loan there is no need to calculate a "break even" point or worry about the savings in the reduced monthly payment being enough to recoup the closing fees that you would pay otherwise.

No-Cost Loans will generally have a slightly higher interest rate than a mortgage with fees. Over a longer period of time, a lower rate may save more in interest expense, but the savings on a short term mortgage is almost inconsequential. For example, I am currently recommending 15 and 10 year mortgage options to many of my clients. The time that it takes to recoup closing fees is often near the end of the term on a 10 year mortgage, so a No-Cost Loan provides flexibility and IMMEDIATE savings.

For more detailed information regarding No-Cost Loans at First Place Bank, call me direct at 734-433-0922 or apply on-line at www.firstplacebank.com/jonmykala. A direct link to the application can be found to the right of this blog.