Utah Low Rate is Utah’s lowest priced lender in the state of Utah for mortgage rates and closing costs vs most of the mortgage bankers in the state of Utah.
A no cost loan is detailed
Offering a no-cost loan to refinance a loan without paying the closing costs. A Utah loan without closing costs is simple really, so many become skeptical. Below is a detailed explanation of how a no-cost loan works and the benefits it offers. Utah Low Rate will not charge the borrower any closing costs. We are 100% compensated on a fixed income basis by our Wholesale investors, not by our Utah clients.
A No-Fee Loan Breakdown:
There are always third party fees associated with doing a Utah Home mortgage Loan. Appraisers, title companies and Bank underwriters all require payment for their services. On a typical $300,000 mortgage, the total for these is approximately $2,800. So by taking a little higher rate there is a credit associated with each interest rate. For example, a 4.25% interest rate may have a cost of 1% but a 4.500% interest rate rate might offer a .75%-1.00% lender credit back to you . Therefore, with a $300,000 loan, you will pay the following:
So for the 300,000 with a lender credit of 1.00%, this would give you a credit of 3,000 which will cover all closing costs and any extra credit can be used to pay for escrow monies on the new mortgage loan.
The Benefits of the Utah No-Cost Home Loan:
When comparing a loan that has closing costs with a no-cost loan, you will either add the additional 2,500 – 3,000 inclosing costs to the new mortgage loan or take the higher rate and not any any closing costs to your Utah Home Loan.