TILA Mortgage is unique in that it offers three distinct closing cost options for our clients to choose from.  We look forward to the opportunity to discuss the benefits of each with you.

1. No Points** - The borrower pays no points to buy the interest rate down.  The revenue earned by TILA is paid by the lender in the form of a Yield Spread Premium (YSP). YSP is         a commission paid to TILA Mortgage by the lender as a result of the borrower choosing             an interest rate that is higher than what he would otherwise qualify for by paying points to    buy the rate down.                                                               space space space space space space space space space space space
2. With Points - The borrower opts to pay points in order to buy the interest rate down.       The lender pays no commission to TILA Mortgage under this option.  As a result TILA Mortgage's compensation for its loan origination services is derived entirely from the borrower in the form of a broker fee.   If you intend to live in your home for more than 8              to 10 years and do not anticipate a need to refinance during this period then this option generally provides the lowest Annual Percentage Rate*** and offers the potential of saving you the most money in interest charges. s                                                pace space space space space space space space
3. No Closing Costs - The borrower pays absolutely no closing costs and the closing           costs are not added to the borrower's loan balance.  TILA's interest rates for our No         Closing Costs mortgages are comparable with the "effective" interest rates for fixed rate mortgages with fees as reported in Freddie Mac's TILA Mortgage uses the YSP it        earns from originating loans at an interest rate that is slightly higher than our No Points        rate, but at a rate that is still comparable to the effective rate other companies are charging with closing costs, to pay all non-recurring fees for the borrower.  The closing costs paid      by TILA include all lender fees, broker fees, and transactional fees such as appraisal, title insurance, recording fees, escrow/closing fee, etc.  (taxes and insurance reserves are not closing costs since the borrower will pay these whether or not the loan is done)   Under         the no closing costs option any YSP remaining after TILA pays all fees is solely what TILA earns on the loan; the borrower pays TILA Mortgage absolutely nothing.

You can forget that old rule of thumb that you need at least a 1% drop in interest rate                before a refinance makes sense.  With absolutely no closing costs even a 1/8%                      reduction in your rate can save you thousands over the life of your mortgage! 

**Points are fees paid by the borrower to the lender to obtain a lower interest rate.  A point is equal to 1%, or a fraction of, the loan amount.  Therefore; 1 point on a $250,000 equates to $2,500 in added closing cost.