 |
|
|
| |
 |
|
Published Articles
|
|
|
|
|
Save on Closing Costs
Closing costs can require a significant payout when purchasing a property or refinance a current mortgage.
According to the Bankrate.com 2006
survey $3024 was the average cost for lender, title, and settlement fees. New York had the highest closing costs
with an average of $3,907. This is a big expenditure no matter how you look at it and many home buyers are
looking for ways to lower the amount they pay when it comes time to close. As a result there are plenty of
companies who are offering programs with lower or even no closing costs. To the uninitiated consumer this seems
like a great deal until the reality of how these programs work is discovered. There are ways to save on closing
costs that won’t end up costing more money in the future but consumers need to educate themselves and make the
right decision.
The No Closing Cost Loan
The idea of a loan with no closing costs seems like a great way to save money but when you look a little deeper
the reality is that in most cases these programs will actually end up costing more in the long run. The way most
of these loans work is that the lender will add points to the loan. This means that you will pay a higher interest
rate on your loan. So instead of paying the $3000 at the closing table you pay a higher monthly payment, because
of the higher interest rate, and end up paying thousands more over the life of the loan. The amount you end up
paying in the end could be in the tens of thousands more than what you would have paid if you simply paid the
closing costs up front.
Obviously, there are valid reasons why a no closing cost loan would be beneficial. If you plan on flipping a home
or plan to move within a few years a no closing cost loan might be a good idea because it cuts your up front costs
and since you don’t plan on paying the mortgage for a long time you will probably come out ahead. Just make sure
you figure out the break even point (the period of time where the increased interest payments are equal to the
closing costs) and try to sell before you reach that point. If you plan on staying in your new home for an
extended period of time though, it is probably best to avoid these types of loans.
myClosingSPACE.com
While myClosingSPACE.com is not a lender we do provide a valuable service that can help consumers save on closing
costs. Title insurance is a huge portion of overall closing costs and by offering considerable discounts on title
insurance myClosingSPACE.com is able to cut closing costs by hundreds or even thousands. myClosingSPACE.com is able
to provide discounts in closing costs because of our investment in technology and the fact that we consider
consumers, not middlemen, to be our direct customers. Our investment in technology has allowed us to develop a
streamlined process for conducting all title searches and delivering title insurance. Since we consider consumers
to be our direct customers we have interpreted the title insurance rates in their favor. Because of these two
issues we are able to offer lower prices on title insurance which in turn means lower total closing costs.
myClosingSPACE.com prides itself on offering the lowest closing costs in the real estate industry while avoiding
adding any additional points or interest to the loan. We can actually save you money when you sit down to close and
we do not make you pay it some other way. What you see is what you get. Couple that with our commitment to customer
service and you will see why we are the best choice when it comes to title insurance and settlement services. To
see how much you can save by using myClosingSPACE.com visit our
purchase quote or
refinance quote page to get a quote as well
as a comparison to what a traditional title company charges.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|