Ever wonder why some advertisements offer the lowest rates and others offer the lowest closing costs but nobody ever seems to focus on offering both?  It’s because rates and closing costs go up and down like a see-saw.  Higher rates equal lower closing costs and vice versa.  But how do you choose which level of rate and fees is best?  Most lenders won’t give you much choice, they offer one or maybe two options at the most.

Naviloan solves this issue (and more) with its Loan Navigator.With just some basic information about your loan situation, the Loan Navigator searches through multiple banks for their best wholesale rates.  It then presents you not with one, but with many options for rate and closing costs. 

You can quickly see the relationship between rate and closing costs in the easy to read format that comes out of the Loan Navigator pages.  Here’s the resulting information for a $417,000 conforming loan amount at 80% loan to value refinance. 

We also roll all the fees into one number.  Just one easy fee includes everything; appraisal, title, underwriting; everything. 

Notice how on the 30 Year Fixed loan, a no closing cost loan is at 5.875% but a 5.5% can be had for only $4,653 in total closing costs.  We can calculate the payback period as the difference in payment divided by the closing costs.  In this case you’d save $99 per month with the lower rate.  Divide that into $4,653 and get a payback of 3.9 years.  If you plan to keep the loan more than 3.9 years, it makes sense to pay the closing costs because after saving $99 per month for 3.9 years, you’ve saved enough to pay for the closing costs.  If you keep the loan for the rest of the 30 years, you’ll save over $30,000 versus the 5.875% no closing cost loan.  Now that’s worth the extra four thousand up front!

So click on the link to the Loan Navigator and see just what your closing cost choices will be.  It updates from dozens of lending sources several times a day to give you the absolute best rates available.  At Naviloan, we understand that you want more choices than you get at a typical bank or broker.  We show you all your options and let you decide which is best for you.  Like our motto says, “More options.  Better loans.”