Question:

How can I get a low closing cost mortgage?

Answer:

There is no such thing as a no closing cost mortgage. It is either closing costs rolled into the loan, or closing costs compensated by interest rate increase. This is how you get the low closing cost mortgage.

In a low closing cost mortgage the borrower has opted not to pay closing costs from their pocket and has either rolled them into the loan or agreed on having the interest rate increase. In that case the only obligations to take care of are to pay the prepaid interest and open the escrow account. The former is used to align your loan with the lender’s processing cycle, the latter is an account with the lender to pay taxes and insurance on the property.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage