CashCall Mortgage Advises Consumers: 'Never Pay Closing Costs'... Traditional Lenders Upset That Industry Secret Revealed

ANAHEIM, Calif., March 17 /PRNewswire/ -- A recent radio ad by CashCall Mortgage (cashcall.com) seems to have struck a nerve with many competitors in the lending business. The commercial urges consumers 'never to agree to pay closing costs,' particularly for those refinancing at the same outstanding balance.

So why the industry backlash? By alerting people to the importance of no-cost refinancing (and making many home owners aware that a no-cost refi is available), CashCall could end up saving consumers millions of dollars… dollars that once went straight into the pockets of mortgage lenders.

According to the CashCall ad, the key to successful refinancing in today's volatile market is to avoid paying closing costs. Here's why: If you refinance without closing costs and keep your same outstanding balance, you've minimized expenses, so much so that if interest rates were to drop even lower, you could refi again, literally without any financial penalty.

"Market traders call this kind of win-win situation 'one way optionality,'" explains company founder and president, J. Paul Reddam. "The consumer can't lose; and when's the last time you heard that about getting a mortgage? With a no-cost refi, you reduce your monthly mortgage by taking advantage of today's historically low interest rates. If rates go higher, and they might, you've already won because you have a 30-year fixed rate at, say, 4.875%.  On the other hand, if rates fall in the next six to 12 months, you can refinance at an even lower rate. You win again. This flexibility lets consumers take advantage of market forces in a way that banks and lenders often do, which is why some in the industry aren't too happy."

The key is to 'Just say No' to closing costs. Pay thousands to close, and you'll lose that money if you try to refinance again in six months to a year, which is why so many consumers aren't financially able to take advantage of today's low interest rates. They're stuck trying to recover closing costs they shouldn't have paid for in the first place.

"Please don't make that mistake," warns Reddam. "Over the course of a 30-year loan, you'll pay thousands more if you can't refinance to a lower rate. Why would you pay more month after month if you don't have to?"

About CashCall

Founded in 2003, CashCall, Inc. has grown to become one of the nation's premier consumer finance lenders. Headquartered in Anaheim, California, the company employs over 250 lending professionals, each dedicated to providing exceptional customer service. A pioneer in the use of innovative computer technologies and forward-thinking management systems, CashCall has been able to simplify the loan process, greatly reduce costs and pass the substantial savings along to customers. Unlike so many of its competitors, CashCall does not charge application fees or cancellation fees. CashCall Mortgage, a division of CashCall, Inc., specializes in new mortgages and home refinancing.  

*CashCall is an equal housing lender. CashCall Inc. offer extends to loans of up to $417,000, owner occupied, rate and term refinances at 80% loan to value with impounds and minimum 740 FICO score. Rates subject to change without notice. Not all applicants will qualify and certain restrictions apply. Loans will be made pursuant to Department of Corporations California Finance Lenders Law License No. 603-8780.

SOURCE CashCall