lenox home mortgages

[Trip]

There has been some local talk about these guys out of texas. They apparently sell fixed rate loans with no closing costs. Anyone know what their scam is?

[ontwo]

Originally Posted by Trip

There has been some local talk about these guys out of texas. They apparently sell fixed rate loans with no closing costs. Anyone know what their scam is?

I don't know anything about them. I took a brief look at their website. But, I do hate the way these companies word these ads. There is NO such thing as "no closing costs". To properly record a mortgage, acquire title insurance, have your house appraised, etc, it costs money.

Now, some companies will say "no out of pocket closing costs" = the costs are rolled into the principal amount of your new loan. You pay it, just not up front

I guess the question should be, "Who pays the closing costs?" If there are truly no closing costs to the borrower, then it has to come out of the bank's pocket. Not likely

[ducati_atx]

its either rolled into the cost of the loan in terms of a dollar figure, or they charge you a higher rate for the loan and get payment when they sell it to a big bank. Either way, you will be paying. Nothing in life is free.... certainly not in the banking industry.

[Trip]

Originally Posted by ontwo

I don't know anything about them. I took a brief look at their website. But, I do hate the way these companies word these ads. There is NO such thing as "no closing costs". To properly record a mortgage, acquire title insurance, have your house appraised, etc, it costs money.

Now, some companies will say "no out of pocket closing costs" = the costs are rolled into the principal amount of your new loan. You pay it, just not up front

I guess the question should be, "Who pays the closing costs?" If there are truly no closing costs to the borrower, then it has to come out of the bank's pocket. Not likely

The bank is suppose to pay it based off your interest payments.

Originally Posted by ducati_atx

its either rolled into the cost of the loan in terms of a dollar figure, or they charge you a higher rate for the loan and get payment when they sell it to a big bank. Either way, you will be paying. Nothing in life is free.... certainly not in the banking industry.

I have a feeling it is the latter that you have to pay a higher rate, because they say it's not rolled into the loan.

[ducati_atx]

the average 30 year fixed rate is like 5.15% according to cnnfn this AM.

[ontwo]

Originally Posted by Trip

The bank is suppose to pay it based off your interest payments.



I have a feeling it is the latter that you have to pay a higher rate, because they say it's not rolled into the loan.

You are prob correct

[Trip]

Can't hurt to see what's up. I am going to ask for a good faith, they have a local office here.

[pauldun170]

Lenox?

I got Lenox crap in my China closet. the mother in law loves the lenox store when we go to the outlets.

I guess they are expanding to fine crystal morgages.

[Cass]

Originally Posted by pauldun170

Lenox?

I got Lenox crap in my China closet. the mother in law loves the lenox store when we go to the outlets.

I guess they are expanding to fine crystal morgages.

Just don't drop it!

[Trip]

It was a higher interest rate type thing. You pay more in interest to pay no closing costs. I just barely didn't meet the cut for it to be a good deal for me though since interest rates have hit the floor. Someone with a really high rate could probably save some with this type of refi.