Adell Shanon

<p class="p__0">They can not be used as part of the deposit on the loan. Any loans which are advertised as having "no closing expenses" typically have unfavorable points embedded in them where the cost of stemming the loan is paid through a greater rate of interest on the loan. This cost should be revealed on your Loan Quote (LE) and Closing Disclosure (CD).</p>
<p class="p__1">When you obtain negative points the bank is betting you are likely to pay the greater interest rate for a prolonged amount of time. If you pay the greater rate of interest throughout of the loan then the bank gets the winning end of the deal. Many people still take the offer however because we tend to mark down the future &amp; over-value a lump amount in today.</p>