No Cost Mortgages Explained
With DNJ Gateway Mortgage’s No Cost loan program there are no points, no origination fee or loan-related costs of any kind, guaranteed.
All closing costs including appraisal, credit report, lender fees, settlement fees, title insurance, recording fees, courier fees and any others are paid by DNJ Gateway Mortgage. These costs are not “rolled into” your loan balance. You will not be surprised by hidden costs at closing.
We Pay These Mortgage Fees so You Don’t Have to:
Origination fee- Appraisal fee
- Application fee
- Attorney fee
- Title insurance fee
- Recording fee
DNJ Gateway Mortgage has been doing home loans this way for almost 14 years, with zero complaints with the Better Business Bureau and zero reports about our No Cost loan with the Commissioner of Banks.
A No Cost loan can result in bigger savings and better results for you, but remember that each borrower’s needs and situation is unique. A No Cost loan may not be your best mortgage solution. The No Cost loan program is not available to all borrowers or on all loan programs.You should review your situation with one of our experienced loan officers to evaluate your options.
You can always give us a call at 877-9No-Cost (877-966-2678) to speak with an experience loan officer or drop us an email.
What’s the Catch?
No catch! There is a trade-off which you need to make sure is to your advantage. The rate on a No Closing Cost loan is slightly higher than the rate on other loans. Because the loan has a higher interest rate the lender pays us a commission. We use this commission (called the yield spread) to pay all the loan-related costs.
Since we are paying all the costs we are motivated to keep loan costs as low as possible and operate very efficiently, which in turn allows us to offer you lower rates.
How do I Know if a No Cost Mortgage is Right for Me?
We’ve done the analysis and calculations and we think No Cost loans are right for most people in most situations. Do you know anyone who has paid off a 30 year mortgage? Consider how frequently you or your neighbors move. The national data shows that the average age of a loan at the time of refinance is 3.2 years. If you pay loan-related costs with a normal mortgage and then refinance or payoff your loan in less than 6 years, you will be throwing money away.
To decide whether a No Cost loan is right for you, the first and most important question is what do your long term plans look like? Will you be in this home another 5 – 6 years? If rates drop will you have this mortgage for another 5 – 6 years?
The truth is that interest rates change as often as stock prices. Interest rates follow the bond market and can change just as rapidly. In the last year the mortgage market has changed more than a full point. Our customers who did No Cost loans at the beginning of the year were refinancing to lower rates by the fall.
Some of our clients have refinanced numerous times at no charge. Had they paid points or closing costs, they would have lost that money because rates dropped. Paying costs can be like flushing money down the drain. We have clients that refinanced 5 times — had they paid closing costs, they would have lost over $19,500 by now.
Learn More About No Closing Cost Loans
If a No Cost loan sounds right for you, call DNJ Gateway Mortgage today to discuss your options with one of our knowledgeable loan officers.
With mortgage 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.
