Zero Points, Zero Fees

Family Funding & Realty makes 0 Points 0 Fees available on several loan programs. To understate how this benefits you as the borrower, we would like to incorporate some crucial terminology of the mortgage lending industry. Points are mortgage fees you pay at closing to reduce your interest rate. If a lenders tells you, “This rate has No Points” then their offer should have no Loan Discount and no Origination fee. One point = 1% of your new mortgage amount. The more points you pay, the lower the interest rate will be. Therefore, a one-point loan will always have a lower interest rate than a zero point loan. Paying points is simply a trade off between paying money now versus paying higher interest over the long term. There are many reasons for choosing a "Zero Points" mortgage. Some of the most common reasons borrowers choose this option are:

1. Lack of cash to close. If you are purchasing a new home and are short on cash for the down payment then Zero Points is usually the best option.

2. If the estimated time you will be staying in the home is less than 4 years. Paying points will give you a lower interest rate and a lower monthly payment, but it typically takes about 4-5 years of living in the property to realize the benefit of the lower payment when weighed against the initial cost of the points.

3. Lack of equity in the property when refinancing. It makes financial sense to refinance your mortgage, but you do not have enough equity in the property to add all your closing costs into the new mortgage amount.

Contact Us, Family Funding & Realty for more information on a mortgage loan that offers 0 Points 0 Fees. We will take into consideration each client’s preferences and make decisions that will ultimately benefit you.