<Loans that allow closing costs to be paid are often described as
no-cost mortgages, no-closing cost mortgages and rebate mortgages. The
money for paying the closing costs comes from the fee that the broker
receives for arranging the loan. Typically the buyer pays a higher
interest rate.
Gordon H. Miller is a mortgage broker who has targeted the market for
no-closing-costs mortgages. He arranges mortgages at a slightly higher
rate than the lowest interest rate available. The higher interest rate
allows the closing costs to be paid. To get customers he places one
advertisement per week in a newspaper and occasionally advertises on
the radio. In two months he generated $5 million to $7 million worth
of mortgage loans. He earns lower fees with these loans, $650 compared
to $1,000 on a $100,000 loan. However the increased business from
customer referrals makes this worthwhile.
http://www.nocostmortgage.com/costcutting.htm
An article from USA Today explains how these loans work.
A borrower who is short of cash agrees to pay a higher interest rate
in return for a rebate that is used to pay off closing costs.
According to Bob Walter, vice president of Quicken Loans, these deals
work best with loans of $110,00 or more. The article quotes the
example of a borrower who would normally qualify for a 5.5% interest
rate agreeing to pay 5.75%. The lender can then sell the mortgage to
investors in the secondary market at a premium. A $300,000 mortgage
may bring a premium of 1% or $3,000.
http://www.usatoday.com/money/perfi/housing/2003-07-10-mym-mortgages_x.htm
A more detailed explanation is given at
http://www.info-central.com/html/mortgage-info-13.html
No closing cost mortgage loan refinances.
http://www.goodmortgage.com/special_no_closing_cost_refinances.htm
Companies offering these loans include:
No Closing Cost Mortgages
http://www.best-mortgages.us/ncc.htm
ArcLoan.com
http://www.arcloan.com/faqengine.asp?ques=2
Mt. Rainier Mortgage
http://www.mrnbank.com/con_p_homeloan.htm
E-loan
http://www.eloan.com/s/show/nonclosingcost?%25variables%25
The Agent Owned Realty Co. explains that it pays its customers the
fees it receives from lenders often referred to as rebates, yield
spread premiums or back end fees. This payment can then be used to pay
closing fees.
http://www.agentowned.com/mortgage/services.cfm
Crestar Mortgage offer a 1% cash rebate mortgage.
http://www.alexandriacitywebsite.com/Crestar%20Mortgage%20Center%20-%20Charles%20Carlin,%20CFP.htm
1% Homeseller
http://www.1homeseller.com/buyers.htm
Cal Coast Realty give buyers a 1% commission rebate.
http://www.calcoastrealty.com/Cash%20Rebate%20Programs.htm
A closing cost assistance loan is an alternative source of funds.
Rhode Island Finance offer a Closing cost assistance loan that enables
customers to borrow 5% of the purchase price or $5,000 whichever is
less to pay closing costs. Repayment periods are 5 to 15 years. The
minimum loan is $500.
http://www.rihousing.com/buyhome/downpayment.html
Some lenders offer loans where 103% is borrowed.
103 Program: A loan for 103% of the value of the home. The extra 3%
covers the closing costs.
http://www.rockfinancial.com/common/images/rck/homeadvantage_spring2002.pdf
NEA offers a 103% loan.
http://www.neamb.com/loans/hmfinf.html>
<Search strategy:>
<"cash rebate" mortgage>
<http://www-sj.google.com/search?q=%22cash+rebate%22+mortgage&hl=en&lr=&ie=UTF-8&start=10&sa=N>
<"no closing costs mortgage">
<http://www-sj.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=%22no+closing+costs+mortgage%22>
<"covers closing costs">
<http://www-sj.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=%22covers+closing+costs%22+>
<Hope this helps.> |
Request for Answer Clarification by
harborcp-ga
on
15 Sep 2003 07:51 PDT
PLEASE RE-READ MY QUESTION. YOUR ANSWER IS ON THE WRONG TRACK. As
stated in the second sentence, I'm a LENDER not a borrower and I want
the long-term loan to be the "take out" of my short term loan. Many of
the borrower's financial shortcomings related to the general term
"closing costs" cannot be "fixed" by bumping up a borrower's interest
rate. Even if they all could be fixed, it's irrelevant to my position
as the short term lender.
I want to provide a short-term loan to cure all those financial
shortcomings (judegements, liens, garnishments, taxes, etc) that may
be preventing their long-term lender from proceding with their 30-year
mortgage. I'm looking for businesses that may do that now.
|
Request for Answer Clarification by
harborcp-ga
on
15 Sep 2003 10:46 PDT
FYI--Didn't mean to come across as strong as it may appear. I share
the blame in not making the question more clear
|
Clarification of Answer by
belindalevez-ga
on
16 Sep 2003 04:55 PDT
<Are you looking for companies providing the kind of service that is
provided by Cal-Lending.com? They arrange hard money loans over 6
months to 5 five year periods.
http://cal-lending.com/california-home-loans/hard-money-loans.html>
|
Request for Answer Clarification by
harborcp-ga
on
16 Sep 2003 08:40 PDT
The cal-lending.com site/firm does not offer what I'm looking for. I
think this might be a lost cause. Is there a way for me to arrange
partial payment for your efforts?
|
Clarification of Answer by
belindalevez-ga
on
16 Sep 2003 08:59 PDT
I have contacted the Google editors and will bet back to you as soon
as I get a reply.
|
Clarification of Answer by
belindalevez-ga
on
16 Sep 2003 23:54 PDT
You may request a refund. Please see for further information.
http://answers.google.com/answers/faq.html#refund
|
