Compare a No Closing Cost Loan
Why pay thousands of dollars in closing costs when you may not get the full benefit? In our No Cost loan we pay all the closing costs. Fees are NOT rolled into the loan amount.
The key question to consider is: How long will you have this loan? Perhaps you plan on moving in the next few years, maybe to a bigger home, maybe to downsize. The break-even analysis determines how many months you would need to keep this loan in order to earn back the closing costs.
Consider that when you pay costs to refinance you could be waiting years before you see the benefit. When you refinance with no closing costs, the savings happen the first month.
Below is the math comparing a No Cost loan to a loan with a mortgage in which you pay closing costs.
The Break-Even Analysis: The Key to Evaluating the No Cost Loan
| No Cost Loan | Paying Closing Costs | |
| Loan Term | 30 Year Fixed | 30 Year Fixed |
| Loan Amount | $325,000 | $325,000 |
| Interest Rate | 5.25% | 5.00% |
| Monthly Payment | $1,795 | $1,745 |
| Closing Costs | $0 Costs | $2,600 |
| Years to Break Even | Save the first month | 4.3 |
Note: While savings and break-even are typical, these may not be market rates.
Discuss Your No Cost Options Today!
Would you like to learn more about the savings you receive with a No Cost loan? Call DNJ Gateway Mortgage today to discuss your No Cost mortgage options.
With loan offices in Raleigh, Greenville, and Wilmington, DNJ works with homeowners and home buyers across the Southeast. We offer mortgages in North Carolina, South Carolina, Virginia, Maryland, Georgia and Florida.
