The Effects of No closing Costs
The biggest thing about having no closing costs or very few closing costs is the fact that more of the money you bring to closing goes towards your loan balance building up your equity. In a traditional sale, you are required to pay up to 4% of the sales price toward your closing costs and another 1%-1.5% to put in your escrow account. On a $100,000 purchase that comes to $5000.00-$5500.00 dollars that you bring to closing that doesn’t pay down your balance. Then you usually have to bring your (at least 3.5%) down payment on top of that. With our owner finance program you have to bring about the same amount to closing but most or all of it goes directly to toward the purchase of the home so that the money you bring to closing pays down your loan balance and you are able to pay off your loan faster. You get the benefit of this money instead of the bank.