8315 W. 10th Street, Indianapolis IN 46234. 

The majority of buyers select a 30-year fixed-rate mortgage, giving them three decades to pay off their house.

A 15-year mortgage, for example, would be a shorter loan term option. This will cut the time it takes to pay off your loan debt in half and probably save you tens of thousands in interest. But there will be a significant rise in your monthly expenses.

Which mortgage, a 15 or a 30-year one, is the better option for you? That relies on a variety of elements, such as your financial situation, your life goals, and what you can buy.

Is a 15-year or 30-year mortgage preferable?

A 30-year fixed-rate mortgage loan is the best option for many people. Simply put, it enables more affordable monthly payments, which is why. The drawback is that it can take more time to build up your equity and pay off your debt.

Because of this, some homeowners choose a 15-year mortgage, which has a shorter loan duration.

However, this does not imply that a 15-year loan is always the best option.

Since you must pay off the same amount in half the time, the biggest disadvantage of a 15-year mortgage is that the monthly payments are significantly higher. Because of this, many homeowners are unable to make their monthly payments.

You and your loan officer must weigh the costs and possible savings of a 15-year mortgage against a 30-year mortgage to determine which is best for your financial circumstances.

real estate agent with home buyer sigining a contract

Evaluating The Costs Of Long-Term Loans 

Last but not least, a 15-year loan will cost you significantly less in total interest charges than a 30-year mortgage. There are two factors for that. First off, your interest rate is probably going to be lower. The second reason is that you won't be paying interest for as long. 

What would you rather choose? A 15-year repayment term or 30 years?

We'd love to hear your thoughts in the comments. Thank you!

In the first part, we've discussed a no closing cost mortgage works, the benefits, and how you can purchase a property with closing cost. 

So now, we’ll dive deeper into mortgages with no closing.

The Alternatives To Mortgages With No Closing Costs

These are the alternatives to using mortgages with no closing costs, including seller concessions, grants for first-time home buyers, and down payment assistance. Below are the details of each alternative:

1. The Seller Concessions

Seller concessions are just a form of financial incentive for sellers that provide property buyers with a way to lower the price of residences. The most typical seller concession occurs when the seller uses the revenues to cover all or part of the buyer's closing costs. Seller concessions can include origination, title, settlement, discount points, and state and local real estate taxes.

Seller concessions amount to 6% of the purchase price, or $6,000 for every $100,000. Seller concessions need the consent of the mortgage lender. Notify your lender if you want to use seller concessions for your next transaction. 

Moreover, here are the rules that you need to know:

2. The First-Time Home Buyer Grants

First-time home buyer grants are financial assistance programs that provide first-time buyers with money to help make homes more accessible. 

Cash grants can be worth up to $50,000 for qualified buyers and help with closing costs, down payments, house repairs, and other home-buying expenses. 

The Down Payment Toward Equity Act provides up to $25,000 cash to first-time home purchasers. It is one of three cash grant measures before Congress. But this bill has not yet been signed into law.

3. The Local Down Payment Assistance Programs

First-time homebuyers with low and moderate incomes might get support from local down payment assistance programs. First-time homebuyers receive cash assistance, forgivable loans, and closing cost aid from down payment assistance programs. Before applying, contact your local provider, as programs may be inactive or out of cash.

a couple reading the documents

Answering Some Questions About Mortgages With No Closing Costs

Are the terms of mortgages with no closing costs the same as those of a standard mortgage?

Will the interest rate on mortgages with no closing costs be higher?

When my lender includes closing costs in my loan, is that a zero-closing-cost mortgage?

Mortgages with no-closing costs require the homebuyer to cover none of the necessary closing charges. Closing costs are covered by the mortgage lender on the buyer's behalf.

There is no such thing as a house purchase with no-closing charges, which is why no-closing cost mortgages are frequently referred to as "zero-closing cost mortgages" or "no fee mortgages."

In this part, we'll first go over how no-closing cost mortgage works, their benefits, and how much closing costs will be for you to purchase a property.

How Do Mortgages With No-Closing Costs Work?

Because purchasing a property and getting a mortgage costs money, "no-closing cost mortgage" is misleading. Every loan has taxes and recording fees. Loan origination and discount points are sometimes waived. The term "lender-paid closing cost mortgage" better describes how no-closing cost loans work. The lender pays the buyer's closing fees in a no-closing-cost loan.

Mortgage lenders offer higher mortgage interest to offset the buyer's closing costs. Market factors affect closing cost-interest rate tradeoffs. The no-cost mortgage option adds $35 per month to a $200,000 mortgage payment at current mortgage rates.

Buyers may request rebates up to their closing cost. Lenders only refund whole fees and may usually trade one percent in closing expenses for a 0.25 percent mortgage rate rise.

The Benefits Of Mortgages With No-Closing Costs

Here are the benefits of a no-closing cost mortgage:

The typical first-time home buyer requires eight years to save for a modest down payment and closing fees without a financial gift or down payment help. For many first-time buyers, eight years is too long. Homeownership is more affordable with no-closing cost mortgages.

mortgage papers with phone and pen

How Much Do Closing Costs For A Property Purchase?

Closing costs average 1.01 percent of a house's purchase price, or $1,001 per $100,000, according to CoreLogic's ClosingCorp. Closing costs include lender, settlement, and title services.

Here are some common mortgage closing costs:

Watch out for the next part as we share additional information about no-closing cost mortgages.

If you have questions or comments, feel free to drop them below.

Thank you!

The expense of title insurance when purchasing a home may be worthwhile to guard against ownership claims made by a prior owner. Homebuyers can choose to acquire either a lender's title insurance policy, which safeguards the lender's financial interests or an optional homeowner's title insurance policy, which safeguards you, the buyer.

The cost of title insurance depends on three things:

Let’s dive deeper into the costs of title insurance.

How Much Should I Pay For Title Insurance?

According to the Vice President Of Communications for American Land Title Association (ALTA), Jeremy Yohe, when a lender's policy and a homeowner's policy are purchased together, the overall cost of a title insurance coverage ranges between 0.5% and 1% of the purchase price. Also, when refinancing a loan, the lender's insurance will cost about 0.5% of the total loan amount.

If you’re wondering how much is the title insurance in Indiana, the answer is this:

The cost of title insurance usually varies per state; however, it usually depends on the price. Your chances of paying more for title insurance increase as your purchase price increases.

Meanwhile, if you obtained a homeowner's title policy when you bought your house, you won't need to purchase another one if you refinance because the coverage is valid for the duration of your ownership of the house.

What’s Included In Title Insurance Costs?

The inclusions in the title company costs could be listed when you receive a quote for title insurance. There are laws in some jurisdictions that mandate fees be itemized while in states, they might be combined into a single title cost quote. An escrow officer or your trusted title company can assist you in this matter.

More or less, it might include the following:

The title insurance quotation you get from a title company directly may not be the same as the information provided on your loan estimate. However, there’s no need to worry. Although title companies must disclose their costs differently by various state rules, the total should match that on your loan estimate.

The Consumer Financial Protection Bureau (CFPB) advises making sure the bottom-line figure corresponds with the title business costs on your loan estimate to minimize confusion with title insurance cost estimates.

How To Shop For Title Insurance?

Three days following your mortgage application, your lender is required to give you a list of settlement service providers along with a loan estimate. You are not restricted to the companies on the list; nevertheless, the list should offer email and phone numbers for numerous title companies.

If you’re looking for a reliable Title Service Company, IndyLegal is here to assist you all the way. Click the link to learn about what we offer.

Top 3 Tips When Shopping For Title Insurance

Tip #1: Get Ready To Haggle

If you plan to purchase a home, practice your bargaining skills. You might look around for title insurance if you’re planning to buy a home. If you live in a state where sellers often pay the owner's policy premium, you may need to haggle over the ultimate choice of title companies.

Tip #2: Ask For A Lower Interest

When refinancing, do not hesitate to request a lower interest rate. You will require a new lender's title insurance coverage each time you take out a new loan. For a price, get in touch with the title company handling your present loan. Title companies could offer a "reissue rate" to win your business.

Tip #3: Ask For A Discount

Ask about discounts if you want to have both the lender's insurance and the additional coverage provided by a homeowner's policy.

To learn more about title insurance, you may call us at 317-214-6023.

8315 W. 10th Street
Indianapolis IN 46234

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