No Loan Cost
Mortgage Warehouse offers a very popular no loan cost option on many of our loan programs. With this option, Mortgage Warehouse pays for all title, appraisal, and 3rd party fees resulting in absolutely zero loan costs paid by the borrower. Many banks offer a "no point" mortgage where they don't charge fees, however the borrower still must pay for some items such as title and appraisal fees. With our true no loan cost mortgage, the borrower pays no loan costs period!
Benefits of the no loan cost mortgage
- If you lower your interest rate by any amount you are saving money
- You don't have to wait any amount of time to recover loan costs...savings kick in immediately
- You can ask for a lower sales price on a new home instead of asking the seller to pay loan costs
- You can refinance anytime rates are lower, even multiple times in the same year to keep saving
- You do not have to lose any home equity to refinance
- The loan is simple and easy. There is no guess work or itemizing sets of fees because there are no fees!
Simply contact any of our loan professionals at 800-924-9040 for a free consultation to see if you qualify for the no loan cost mortgage. Certain restrictions apply.
Common Questions About Our No Loan Cost Loan Program
The following are general questions and answers regarding our popular No Loan Cost home loans. Because underwriting rules and guidelines change often and each borrower’s situation may vary, these answers do not supersede the guidance of your loan professional.
Q: Why is a No Loan Cost loan a big deal? Will I really benefit and save money?
A: The national average that a homeowner pays for loan costs is $2,748 (as published by Bankrate.com). Our No Loan Cost customers avoid having to pay this $2,748 which results in a huge savings. It also makes refinancing a “no brainer”. With a lower interest rate, you will save money and it won’t cost you anything.
Q: Do you charge a higher interest rate on the No Loan Cost loan program?
A: Our No Loan Cost rates are typically at or below the national average. You can expect to get an interest rate that is just as low as what other places are offering but with us, you will avoid paying for all those loan costs.
Q: If there are no loan costs, how does Mortgage Warehouse make money?
A: We pay for your loan costs with some of the revenue that we make when we release the servicing of the loan in the secondary mortgage market. After paying for your loan costs, we still profit although our margins are not nearly as high as some other lenders and banks. We receive a lot of referrals and repeat clients which is a big part of our success and helps us keep our exceptional pricing.
Q: What is the minimum loan amount required for the No Loan Cost mortgage?
A: This varies with changes in the market but usually around $180,000. During periods of exceptional loan pricing, we have approved no loan cost home loans as low as $150,000. With smaller loan amounts, we significantly “scale down” the loan costs, but cannot waive everything. It is best to try our free mortgage review service so that we can price out your specific scenario.
Q: Is the appraisal fee included in the No Loan Cost mortgage?
A: Yes. With regards to the appraisal fee, borrowers will pay upfront for this service (typically $300-$400) and Mortgage Warehouse will reimburse this fee at closing. If for any reason the loan does not close, Mortgage Warehouse does not reimburse the appraisal fee.
Q: Does the No Loan Cost mortgage have a pre-payment penalty?
Q: Can I still qualify for the No Loan Cost mortgage if I have less than perfect credit?
A: The No Loan Cost mortgage was designed for those with credit scores of 740 and higher but some below this mark have been approved on a case by case basis. You really should try our free mortgage review to learn all of your options.