Mortgage Loan FAQ | Denver Mortgage | Colorado Mortgage

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Do you offer NO CLOSING COST loans?

Yes and no. The Truth is, there really is no such thing as a free loan. Typically, when you hear the words "no closing costs" you can expect to pay a higher interest rate. Why? With any loan, there are numerous 3rd parties involved in your loan transaction, such as the appraiser, the title company, the loan officer, the lender, etc. They each have to make a living by providing a service to your loan transaction. If there are no closing costs, then who will pay for their services? Will they work for free? Would you? The simple answer is that in order to offer you a "no closing cost" loan the lender will generally charge you a higher interest rate. With a higher interest rate on your loan, they can afford to pick up those 3rd party fees associated with your transaction.

Sometimes this is good for you, and at other times it is not. If you plan on being in the loan short term (2 years or less for example), then yes you may want to opt for the no closing cost loan. However, if you plan on staying in the loan long term, then wouldn't you want the lowest rate possible for your loan? Yes you would!

When in doubt, ask our professionals, and we'll show you the break even point and advise you as to which option is right for you.

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