A no cost loan is just that: a transaction in which the broker incurs all up-front cost (i.e. escrow, title, appraisal, processing, points and /or other junk fees). The broker receives a rebate from the investor, and with the rebate the broker will pay all of the non-recurring closing costs for the customer.

The customer takes a slightly higher interest than the market rate. Because the Bank pays us a premium to give a slightly higher rate, we take this premium to pay your fees. Whatever is left over becomes our margin.

Reme does not lose money to do these loans as we still get paid from the bank.

Questions that you might be asking:

* Who pays the fees?

* What is the catch?

* Does this loan make sense when I recently refinance or purchased?
Because you may be able to do a no cost loan it definitely makes sense because you are not incurring any additional points and or fees and your principle balance on your current loan is not going to increase if you opt for this type of loan. Why not save the money if you can.

* Will I be extending the life of my loan?
Yes. Your loan period starts over with the term you choose. However, we suggest that you continue to pay your old payments on your new loan so that you may not loose any time. Ex: you financed 7 months ago at 200,000 at 5.875 percent. Your current payment should be 1183.80 per month. You now do a no cost loan at 5.625 your new principle should be approx. 198,600 your new payment is 1143.25. if you continue to pay the old payment on the new loan you will pay off the new loan in 27.58 years which is better than 29 years, 5 months that you have remaining on your old loan.

* Am I better off paying fees and points?
Most people do not want to add more money to their principle balance on their loan after they just had their principle go up on the last loan due to paying points and or fees. When comparing loans always compare apples to apples. Ex: we do not look at your current payment when calculating break even points. We look at a no cost loan vs a cost loan based on the new payments not what you were paying on your old loan.

* Do I have to give you mounds of paperwork?
Our programs are unique.

* How does the process work?
We take all applications over the phone. We will run you through our system and we will contact you within 48-72 hours with an approval/disapproval for the loan.

How does Reme get paid: see top notes