COUNTRY WIDE
Country wide braggs every day about how there is no closing costs. Their ads run 5,6 and 7 times a day every day. NO "CLOSING COST OF ANY KIND."COUNTRY WIDE can do what no other company can.
This is a prime example of lies by omission. (consult your CD).
Any business is in business for the sole purpose of making money. However some deliberately decieve the consumer.
I went to their web site (country wide. com)and tried to find out how they could possibly do what no other business could. I was not suprised by my findings.
This thumbnail
was the closest I could find about costs. If you notice that there are closing costs and there will be a ton of them.
The third paragraph says "You can pay your closing costs up front, roll them into your loan , or cover them with a higher interest rate over the life of the loan. Decide what's right for you".
This is flim flam and fast talking. If you roll the closing costs into the loan the consumer will re-pay it over the life of the loan anyway. You won't have to worry about the higher interest rate, you will get stuck with it either way.
No matter how you look at it YOU WILL WIND UP PAYING INTEREST ON THE CLOSING COSTS. For example: If you roll the closing costs (let's really get cheap and say the closing cost's are only $2500 and only a 5% down payment on a $100,000 house wich is $5000 down, for a total of $7500 which will be rolled back into the loan.
Ok $7500 at 7% interest =$49.90 =per month x12 mo. =$598.80 x 30 years=$17,964.00 that you will pay back providing you get a fixed rate loan. It it is a "ARM" "adujustable rate mortgage" which means YOUR COST"S will go UP.
The very last two words of the ad say's "We'll Explain" so I called and before they would give me any informaton they wanted MY information which I was not about to give to anybody. (see yellow pages on this site)
I could be wrong (I doubt it) but "no closing cost means "none out of pocket at the closing."
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QUICKEN LOANS
If you ever want to use a mortgage calculator, Quicken loans does not have a calculator that works for the consumer. Before access is allowed you have to give them your current monthy payment. Your monthly payment has absolutely nothing to do with the monthly payments on a new purchase. I can only think of one reason why they want that information and that is for information.
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