America's Mortgage Store: No Fee Financing

No Fee Financing

Why spend money to borrow money?

Buy a home, refinance to a lower rate or get cash out with no fees!

NO Fee Financing. What's the catch? Quite simply, if you are willing to pay a higher interest rate, the lender will pay for the expenses necessary to provide you with a loan. So, it just comes down to a break even point math equation. When will the cost of the higher interest rate catch up to the money that was saved by paying no fees? The quick calculation is to simply divide the higher payment into the money saved. The number you receive will be the period in months when the break even point occurs. The questions then to ask yourself are, how long will I have this same loan? What alternative uses of the saved cash would be more beneficial? Need help figuring it out? Not a problem, we do it every day.

No Origination Fee
No Loan Discount
No Appraisal Fee
No Credit Report Fee
No Mortgage Broker Fee
No Tax Service Fee
No Underwriting Fee
No Processing Fee
No Flood Check Fee
No MERS Fee
No Closing/Escrow Fee
No Title Insurance Fee
No Recording Fee

Yes Advance Payments:

Per Diem Interest
Hazard Insurance Reserve
Tax Reserve

Actual cost of each item will be disclosed on your Good Faith Estimate and HUD-1. There will be a Broker Credit from the Yield Spread Premium to pay fees.

Full disclosure; we will show you where every penny goes. Nothing is hidden.

Mortgage Broker License #0018655

Here is how no fee financing makes sense

The first calculation is to compare the fees of a no cost loan and divide it by the payment savings of a loan with fees. That will give you a break even point in months.

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For Example:
$400,000 loan with no fees at 5%
$2147.28 Payment

versus a $404,000 loan with $4000 in fees at 4.75%
$2107.46 Payment

Difference in payment: $39.82

Difference in cost: $4000

Break even point: 100 months

So, it took 100 months to recover the cost of the lower rate loan.

It's the Borrower's Yield Spread Premium Now

With the mortgage broker law changes effective Jan 1, 2010, the yield spread premium that comes from the lender is now owned by the buyer to use in whatever manner they want.

On many transactions, that can be as much as 3% of the loan balance. For a loan of $300,000, that would be $9000 that can be applied to closing cost and pre-paid items. This is a perfect way to minimize the investment needed to buy a home. Although a higher rate is charged for the cash up front from the lender, in many instances it is the most prudent decision.

We welcome the opportunity to look at your current financing
or any other real estate venture you are considering.
Of course we offer other programs and options.