At the forefront of our financing options is our unique process that uses a lender credit to pay your loan costs for you. Nothing is added to or "rolled" into your loan balance. We can structure your financing such that a lender credit entirely offsets your loan costs. Our process lets you choose to reduce your down payment or cash-to-close and still obtain your desired financing.
How does it work?
For a given type of loan, such as a 30 Year Fixed Rate, lenders offer a range of interest rates on any given day. To obtain the lowest interest rate offered, you’ll typically have to pay all of the loan costs (appraisal, title insurance, closing fees, etc.) plus an additional fee that goes to the lender called a discount (commonly referred to as "points"). But you have a choice: you can pay the costs or have the lender pay them for you.
In most cases, the choice to allow the lender to pay all of the loan costs makes more sense. The interest rate differential between a loan where you pay loan costs and points compared to one where the lender pays the loan costs for you can be very small. The small rate difference results in a small payment difference and a long time to recoup the upfront costs required to obtain the lower rate.
In other words, the rate you can get allowing the lender to pay all of the loan costs for you may be very close to the rate you can get if you pay everything yourself. When we do a comparison of the two options, many of our clients choose the option where the lender pays the loan costs for them. This results in a loan where you do not have to pay the loan costs yourself, either upfront or rolled in to the loan. This is referred to as Lender Paid Loan Costs.
We will help by presenting both options to you along with a clear comparison. You can decide which option is best for you. If we find an appropriate option, we’ll help you obtain the new loan by handling all of the details with the lender and the title company. Your Vertex Loan Advisor and Loan Processor will answer any questions you have throughout the process, and we will arrange for the closing at a location that’s convenient for you.
After your closing, your loan advisor will monitor rates for you and let you know about market developments of potential interest. We can help you keep your mortgage in line with your overall financial goals.