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Zero Cost Loans… How and Why?
Author: Scott Lambertus  | Posted: 24-03-2008 | Comments: 0 | Views: 20 | Rating: (50)  (?) 
There are many benefits to doing a Zero Cost Loan. The most obvious one is that it cost you nothing. The APR is exactly the same as the note rate. How do we do this you ask? Through a little higher interest rate, we as a company receive extra compensation from the lender directly. With this extra compensation we pay for your closing costs. It's as simple as that!
Your payment, most often will be a little higher then if you were to pay closing costs and roll them into the loan. But the amount of time it would take to make the money back through monthly payments would usually be out past around 5 years. To get your accurate break even point CONTACT US and receive a free evaluation.
Most people will refinance or sell before the first 5 years is up on the loan. Not to mention if it is a band-aid loan which is intended to boost your credit and then refinance. With this scenario it is definitely the wisest choice to make because you know you are going to refinance again within the next few years… maybe as soon as a few months.
Another reason for doing a zero cost loan would be; that if rates happen to go down in the future, you can refinance again to the initial rate in which you were going to pay for. And it now has cost you nothing. If you recall back in the late 90’s when rates were much higher and there was a steady downtrend, some of you may have refinanced over four times and each time paying upwards of $5,000 in closing costs. That’s $20,000 total back into your loan. With a Zero Cost Loan your balance would have remained the same. You can always refinance to a lower rate, but its much harder to refinance to a lower balance.
About the only time you would not want to do a zero cost loan would be on some of the larger loan amounts of $600,000 and up. The reason for this is that the interest rate is being applied to a larger sum of money and the break even point becomes only a few years out… it simply savings after that point. At ZeroCostLender.com we will always give you the option of paying closing costs if you prefer, in fact some scenarios may warrant it. Yet, I’m sure you will see that a Zero Cost Loan is preferred.
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About the Author:Scott Lambertus
http://www.zerocostlender.com/index.htm
Scott@zerocostlender.com
877-302-5546
Biography
Degrees
Allied Real Estate Schools— -Real Estate Appraisal, Real Estate Economics, Escrows, Real Estate Finance -Legal Aspects of Real Estate, Real Estate Practice, Real Estate Principles. San Diego State University Bachelor of Science, Communications Department
My Expert Service
Refinance, Purchase, Construction, Commercial lending, Zero Cost Loans, Short Sales, Credit Repair. Wondering if your loan is the right one for you? Unsure if your current loan officer is playing it straight with you? Currently being offered a short sale or settlement from your lender and wondering if you should take them up on their offer? Call me up for advice and/or review of your current situation. Subprime, A-paper, Hard Money, Construction, Zero Cost Loans
Experience & Qualifications
I have been working with people and loans for seven years. I have at worked at five different organizations from broker shops, direct lenders, acquisition and development, Subprime, A-paper, Hard Money, Construction, Zero Cost Loans. I know the ins and outs of this business and will educate you on the best decision for your situation. • Responsible for analyzing credit reports, appraisal reports, income documentation and title reports • Restructure applications to make loans work • Structure and development of commercial loans • Structure and development of construction loans, A & D
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