No-Fee Mortgage
Categories: Mortgage
Does anyone really believe anything is free?
“No fee” just means that there isn’t a definable fee up front when you take out a mortgage. Maybe it means you don’t pay points up front, i.e. pre-paying interest charges so you can deduct them sooner. For some, for tax reasons, this is a smart thing to do. For most, it’s not.
Anything “no fee” has this insidious buried feeling. Like…sure you didn’t pay any closing cost fees to the underwriter of the mortgage, but instead of paying 3.923% on your mortgage, maybe now you’re paying 4.013%. So you pay 10 basis points more on the whole enchilada year after year after year.
Was that free? About as free as that enchilada.