QDoes Zero Points Really Mean Zero Points? What About No Closing Costs Loans?
AThe answer is maybe. Remember there are more then one type of Points (Discount and Origination) not to mention a Mortgage Broker fee which is expressed as points. Remember that the lender and broker needs to make a living. Therefore the more lines on the closing statement or good faith estimate that says zero the more likely the rate you are paying is higher than it otherwise would be. Also, it is often unclear what a lender or broker means by no closing costs or no point loans. Sometimes the lender or broker will increase fees to compensate for the lack of points or a more favorable rate.