The point of contention is not whether a loan with costs is better than a no cost loan, it is whether no cost loans exist.
No cost loans do exist. Every loan rate has a cost or credit associated with it.
A no cost loan to the borrower occurs when the credit from the lender covers all 3rd party fees.
It is free to the borrower, i.e. NO COST.
If you start with a $400,000 loan, you end up with a $400,000 loan and nothing is added anyplace else.
If you want a lower rate you are welcome to pay costs.
I’ve never said that a no cost loan comes at the lowest rate possible.
I looked up the definition of FREE to make sure I understood what it meant, and it said COSTING NOTHING.
So I will stick with my assertion that a no cost loan IS a free loan.
To say that a no cost loan doesn’t exist IS wrong
(and it’s idiotic)
I also looked up the definition of idiotic which referred me to stupid, which is defined as “unable to think clearly”
I think my use of the word is accurate.
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To understand the power of compounding and don’t think it’s worth it to refinance to only save .25%…..
Saving .25% on a $400,000 loan can save you $37,000 in interest AND it can be done at no cost**
Saving .50% on the same loan can save you $72,000
**You can also pay $$ to get your loan and you might save even more.
