We apologize, but the forums are closed for new posts. Click Here To Join The Unemployables Facebook Group

Welcome, Guest. Please login or register.
September 25, 2021, 11:32:29 pm
Home Help Search Calendar Login Register

Welcome, Guest. Please login or register.
September 25, 2021, 11:32:29 pm
Home Help Search Calendar Login Register

Author Topic: question regarding closing costs  (Read 1686 times)

Offline xx

  • Member
  • *
  • Posts: 12
question regarding closing costs
« on: May 26, 2006, 01:23:07 pm »
 I saw lots of advertising out there about mortgage companies generating loans with no closing costs. My question is what's the catch? Do they have higher rates, or what do they do to offset their expenses associated with this "no closing costs/low closing costs" offer? Any input is greatly appreciated.

Offline aak5454

  • Member
  • *****
  • Posts: 1293
Re:question regarding closing costs
« Reply #1 on: May 26, 2006, 01:42:18 pm »
yes, you pay a higher rate.  They get a higher commission (called yield spread premium) that they use to cover the costing cost.

Sorry, no free lunch.

 




SMF 2.0.15 | SMF © 2017, Simple Machines