Are no cost loans really no cost?

  This is one of the tricks that some lenders use to make the borrower feel good about the loan they are about to get.  If you think that you are going to get a no fee loan then guess again.  Someone has to pay for the cost of doing a loan and it is going to be you.  You will pay over time with a higher interest rate and possibly a prepayment penalty attached to your home mortgage.  This will have you paying up to ten times more for the same fees if you chose not to pay them up front.  Also keep in mind that loan origination fees are tax deductible. 

  There is also another trick that I seen on TV.  This is a bad one as you will be trap unless you pay a fee to get out.  There is a lender that is stating that you can be approved in minutes and have loan doc’s sent out the next day.  The loan doc’s are a binding contract and once the three day right of rescission is up you are trapped.  There will always be a delay in funding and this is time used to get you approved.  Just because a company has had you sign loan doc’s does not guaranty you a new mortgage.  Post approval issues have a way of coming up and you are now without a loan.  Imagine that…

 

Stay Tuned….  

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