When you talk about no closing cost mortgage, the easiest thing to say is: "Don't blow six or seven thousand dollars on closing costs, paying some predator thousands and thousands of dollars, when you can do the same thing for free." But whether to choose a no closing cost mortgage or not takes a much more detailed and careful mortgage analysis. We have to consider the customer's current mortgage scenario, cross-referenced with how long that person plans on being in the house and also how much was spent on the prior mortgage transaction.
Lenox Financial understands that people are becoming more educated about their home mortgage and how the mortgage industry works. When interest rates are at all time lows, every single person who owns a residential mortgage becomes a potential candidate for a mortgage refinance. With more people refinancing and purchasing homes because of this low rate environment means more people getting educated about the mortgage industry. As we continue to increase our advertising and presence, the public will realize that total no closing costs mortgages are now accessible. When they realize that they don't have to invest thousands of dollars in closing costs, they will begin to understand that they can manipulate the mortgage refinance and mortgage purchase market to suit their personal needs.
There was a time when people spent thousands of dollars in commissions trading their stock portfolios. When the commissions were eliminated, it revolutionized the industry to the degree that people are trading their own stock accounts now, without any sort of licensing, and doing it themselves online with no commissions at all. I feel that the mortgage industry will eventually be transformed in the same way, somewhere down the line. The very first step is getting rid of the closing costs, which is what we have been able to accomplish. You wouldn't trash your car and start riding a horse to work, or get rid of your CDs and go back to cassette tapes. Paying closing costs on your mortgage is making the same mistake. That's why I think the no closing cost mortgage will revolutionize the industry!
The mortgage market and mortgage rates are extremely volatile—a home mortgage on which you are now spending $5,000 or $6,000 in closing costs may be obsolete in two months. Using Lenox Financial's mortgage management philosophy, with the most sophisticated technology and experienced mortgage managers handling these transactions, we watch the mortgage market on a day-to-day basis and catch fluctuations. These fluctuations allow the customer to lower mortgage payments, consolidate second mortgages, payoff credit card debt, or do whatever else needs to be accomplished. Then we sit back and watch the mortgage market. When mortgage rates improve down the road, we repeat the process again!
From our market analysis in late 2007, we found that since 1989, interest rates have fallen month-to-month over 119 times and have risen over 57 times. Interest rates dropped 36 times from one quarter to the next, and rose about 30 times between one quarter and the next. From year-to-year on average, interest rates dropped 12 times and they've risen four times. To make a comparison with the stock market, you don't invest thousands of dollars in a company's stock when it's at a 12-month high. With a mortgage it's foolish to invest thousands of dollars at any particular time! Why? Because the odds are that through mortgage market fluctuations, whatever the mortgage rate may be (whether it's 5%, 6.25% or 4.5%), the charts will perpetually hit those marks. The key is to be ready for the mortgage market low —watching like a snake about to take a bird out of a nest—and jump on the market. When you are not investing thousands of dollars in closing costs, you can manipulate the mortgage refinance and mortgage purchase market to suit your personal needs, at any particular time.
Lenox Financial has saved customers over $250,000,000 in closing costs! Don't let these predators get any more of your cash. We are doing, for free, what they have been charging thousands of dollars to do for years. It really is free!
Make no mistake about it—just as not everybody gets to drive a car, not everybody gets a no closing cost mortgage. You have to qualify. This is for people who pay their bills on time and would normally qualify for a mortgage. But if you qualify, and most of our customers do, you are not going to have any closing costs and we don't roll them in to the loan. If you walk in with a $300,000 loan, you will walk out with a $300,000 loan. We are going to pay for your credit report, appraisal, intangible taxes (in the states that they apply) and attorney fees. Yes, we are going to pay for all that!