Thursday, July 12, 2007

The High Cost Of "No Closing Cost" Mortgages

Another "Beazer Homes" investigative report appeared in the Charlotte Observer recently. This time, The Observer talks about Beazer's reported use of so-called "no closing cost" mortgage loans in financing their home sales. More specifically, the focus is on Beazer's reported practice of arranging for no-cost mortgages for its homebuyers through its mortgage affiliate, which reportedly charged a higher rate of interest for providing such a loan without informing the homebuyer, and collected yield spread premiums in the process . For more, see `No closing costs' add up fast (When Beazer offers incentives, homebuyers think they'll save money. Some don't.).

Go here for other posts on so-called no cost mortgages.

Go here for other posts on the Charlotte Observer's investigative reports on Beazer Homes.