This Information comes from an associate of mine, Clark Jensen with with Utah Mortgage. Good information at this time of historic low interest rates.
“One of the more popular loans is the 30 year fixed “NO closing cost loan”. Some lenders want you to think it’s a magic trick. Here’s how it works.. the loans come at a slightly higher interest rate and then the lender pays your closing costs.

For example, let’s say you have a $200,000 loan at a 7% interest rate. If you refinance to a 6.25% rate, it would save you about $98 per month. If the closing costs would then be $3,000 it would take about 2 1/2 to 3 years to break even. However, on a NO closing cost loan, instead of saving $98 per month you would save about $66 dollars a month, but there are no costs, so the break even point is immediate. With the no closing cost loan, since there is no cost, you can refinance even if the rate only drops just a small amount, because there are no costs involved for you to pay at all.. Nothing!

So now you know the truth behind the “No closing cost” loans! Remember, you can use this strategy for buying or refinancing your home”
So when you are ready to purchase a home in Northern Utah, Cache Valley or Southern Idaho remember this little trick. Call me and let’s start making Real Estate As Easy As Pie when you purchase your next home.