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No Cost, No Fees, No Worries

Posted by:  Chip Poli
2012-11-07 10:05:04

Getting interest rate quotes online can be a challenge sometimes. In fact, it can be a challenge all the time if youíre dealing with the wrong lenders. You can research interest rates online and see a variety of quotes from different lenders, all with different rates, APRs and fees. Itís confusing and itís quite possible that some lenders confuse purposely.

After all, some lenders just want you to call them so they can turn on their marketing machine and hope to get your mortgage loan. But you do see one lender who offers a loan with no costs at all. How can they do that when other lenders charge fees? At Poli Mortgage Group, we specialize in no fee mortgages.

Good question by the way; how do they do that?

First, understand that lenders set their interest rates each and every day on the very same index. If one bank offers a 30 year fixed rate mortgage loan underwritten to Fannie Mae guidelines then another bank who promotes the very same mortgage will base their rates for that day on the exact same number. Thatís why one lender canít be at 2.00 percent and everyone else is at 3.00 percent under the very same set of fees.

Second, all lenders can offer a variety of interest rate selections for the very same loan program. For example, a lender can offer 3.75 percent, 3.50 percent and 3.25 percent for the exact same program. The only difference is how much the lower interest rates cost the consumer in terms of points and associated costs.

Third, all lenders typically have their own set of internal fees they charge their borrowers. Common lender fees will include a loan processing fee or an underwriting fee. Whatever the charge, these fees are assessed the borrower to offset the additional overhead lenders incur when evaluating loans for approval.

And fourth, some lenders offer no fee loan options almost all the time. If youíre seeking a no fee loan combined with great rates, youíll want to call Poli Mortgage Group! At Poli Mortgage we believe that no fee loans equal happy customers and happy customers refer their friends and families. This is how our business was built.

No Fee Mortgages

When the overwhelming majority of your business comes in the form of a referral from happy customers, you do more business and when you do more business youíre able to offer the best available terms to all that qualify!

With those four facts in mind, letís look at a typical rate quote example for a $300,000 30 year fixed rate loan from two lenders.

Rate Points Lender Fees Mo. Pymt

Lender A 3.50 % $-0- $1,000 $1,347

Lender B 3.25% $3,000 $1,000 $1,305

Which is the better deal? Lender Bís monthly payment is lower by $42 but costs $3,000 more than Lender A. It would take nearly six years to see the net result of the lower payment due to the reduced fees charged by Lender A. Lender A looks like it might have the better deal.

Now letís throw a wrench into the equation, a no-cost quote from Lender C.

Rate Points Lender Fees Mo. Pymt

Lender A 3.50 % $-0- $1,000 $1,347

Lender B 3.25% $3,000 $1,000 $1,305

Lender C 3.625% $-0- $-0- $1,368

Lender C has a higher payment than Lender A by $21 and Lender B by $63. But again, the difference is in the fees charged. Lender C charges no points and no lender fees for a savings of $4,000 over Lender B and $1,000 over lender C.

The difference between Lender C and Lender A is 47 (months) and Lender B is 63 (months). Again, you can get lower payments from Lenders A and B but you have to pay more for the lower rate. Which one to choose?

Again, at first glance the lower payments seem to be the better choice but you also need to consider how much youíll have to pay in order to get those lower rates.

Finally, understand that all lenders can offer a no-fee loan; itís simply a correlation of interest rate, loan volume and advertising costs. Now you understand why Poli Mortgage Group brings the lowest mortgage rates to the market every day.

Even without fees.

To cut through the smoke screen and achieve the best rates with the lowest fees, call Poli Mortgage Group today! 866-353-POLI (7654)

Rates. Integrity. Service.

Keep in mind, the rates discussed in this post are for illustrative purposes only. Interest rates vary day by day and hour by hour. For an accurate rate quote give us a call and discover the Poli Mortgage Difference!

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