No Closing Cost Mortgage
in California
- 5-Star Rated Mortgage Broker
- No Closing Cost Refinance & Purchase
- Avoid Paying any Closing Fees
- Residential and Commercial Loans
- Office located in Los Angeles
What type of property are you refinancing?
Single Family
Multifamily
Condominium
Townhouse
How will this property be used?
Primary Residence
Vacation Home
Investment Property
Estimate credit score
Excellent 770+
Good 660-719
Avg. 620-659
Below avg. 580-619
Poor <579
What type of property are you purchasing?
Single Family
Multifamily
Condominium
Townhouse
Are you a first-time home buyer?
Yes
No
How will this property be used?
Primary Residence
Vacation Home
Investment Property
Estimate credit score
Excellent 770+
Good 660-719
Avg. 620-659
Below avg. 580-619
Poor <579
Final Step
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Summary
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Can I refinance my mortgage with no closing costs?
Yes, you can refinance your home loan with “non-recurring” closing costs. Buying a house is expensive, but your expenses don’t stop there: you will need to spend some money on home improvements, repairs, etc. So, it makes sense that after you have paid your mortgage loan you want to have some finances on hand that you can invest in the property.
However, you also need to pay a closing cost which usually includes: homeowners insurance and property taxes, third-party chargers for appraisals, title insurance, and escrow services, and, of course, the lender’s fee. If you want to avoid paying this additional money, then a no closing cost home loan might be the right option for you.
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What Are No Closing Cost Home Loans?
No closing loan will help you save some money, but you need to understand that this is not a free loan. It is essential to know how this type of loan works to make the right decision. If you don’t pay the fee at the closing of the deal, then closing costs are included in the loan.
The lender will pay this money on behalf of the borrower, but in exchange for paying the fees, he will raise the mortgage interest rate. Also, you can get a no closing cost refinancing in this way. So, if you opt for a zero-closing cost mortgage, then you will have to pay a higher interest rate over the lifespan of your loan.
How Does Zero Closing Cost Mortgage Work?
Instead of paying a lump sum of money upfront, you pay a little bit extra with the interest on your loan. When you decide whether to use a no closing cost mortgage you need to do your math or contact us, so we can estimate how much extra you will pay month after month.
No closing cost home loan makes sense if you are not planning to stay in your house for more than five years. In this case, the amount you overpay each month on interest will not be higher than the money you need to pay when closing the deal. Nowadays, Californians are choosing no closing cost refinance programs.
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Hours: Monday-Friday 10:00 AM - 5:00 PM
In-Person at LA Office
13317 Ventura Blvd #H, Sherman Oaks, CA 91423
Cell-phone
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Applying for a No Closing Cost Home Loan
An important step is selecting the correct type of loan for your situation to keep the closing cost to the minimum or to go for a no closing cost loan. Do your homework and study all the options that are available to you, whether it is a conventional loan, a VA home loan, an FHA loan, or any other.
If you need help figuring out if the loan is right for you, our Los Angeles brokerage team will gladly assist you with calculations and the ideal loan option for your situation.
No Closing Cost Mortgage in California FAQ
What is a no closing cost mortgage?
No closing cost mortgage is a kind of loan where the lender pays the costs associated with the closure of the loan. These could be appraisal fees, title insurance, or even processing fees. However, these are not paid upfront but are added to the loan balance or through a higher interest rate. For example, if the origination costs are $3,000 and you opt not to pay them out of pocket, the loan amount could increase by that particular amount, or you may take a rate higher by a quarter percent to offset it.
How do I qualify for a no closing cost mortgage in California?
For the most part, qualifying for a no-closing-cost mortgage in California will be similar to the requirements for a conventional loan: a higher credit score, documentation of consistent income, and a decent debt-to-income ratio. All lenders listed above have requirements but remember to shop around and compare quotes.
Are there any drawbacks to mortgage with no closing cost?
The big negative to a no-closing-cost mortgage is that it may cost you more over the loan term. You’ll be paying more in interest due to the higher interest rate or increased loan amount. For example, if you borrow an additional $3,000 to pay closing costs, you will pay an extra $1,500 in interest over a 30-year term at a 4% interest rate.
What types of fees are typically included in the closing costs that can be waived?
Fees that can be waived include loan origination fees, appraisal fees, title searches, title insurance, surveys, taxes, deed recording fees, and credit report charges. You should ask your lender for a breakdown of what fees they would cover with a no-closing-cost mortgage offer.
Can a no closing cost mortgage be the right choice if I plan to be in this home for a short period?
Yes, if you plan to stay in your home for just a few years, a no-closing-cost mortgage may be your best deal. Since you won’t be in the home long, the higher interest rate won’t affect you as much as it would someone who planned on keeping their mortgage for many years.
Can I still negotiate rates and terms with a no closing cost mortgage?
Absolutely! Even with a no-closing-cost mortgage, one can and should negotiate with the lenders. Some will offer slightly lower interest rates or better terms than others, so it pays to compare a number of lenders.
How does a no closing cost mortgage affect my home equity?
With the costs rolled into the loan balance or absorbed through a higher rate, your immediate out-of-pocket expenses are reduced, but it also means you start with less equity in your home. If your loan amount increases, this reduces the equity you have when you begin repayment.
Where can I find the best offers for no closing cost mortgage in California?
Do your homework by consulting local banks, credit unions, and online lenders. You can also check out websites that compare mortgage products. Reviews and contact with the Better Business Bureau or similar organizations go a long way in ensuring you deal with reputable lenders.
*These questions cover the essential features of the no-closing-cost mortgage in California, giving prospective homebuyers a better idea of what they may expect from the market and how to avail themselves of their alternatives.
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