Mcnicholas Nicholls

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