Compare a Home Equity Loan with No Bank Fees at Closing vs. a Traditional Mortgage

Many lenders will offer a loan with no bank fees at closing in lieu of a traditional mortgage. Loans with no bank fees at closing are generally priced at a higher interest rate than a traditional mortgage. The higher rate allows the lender to make enough money on the interest rate spread from the underwriter to pay for all your closing costs and provide them with their profit. Use this calculator to help determine if a home equity loan with no bank fees at closing with your lender is better than a traditional mortgage.
Amount of loan ($) 
Number of years 
Mortgage Rates
No-Cost LoanTraditional Mortgage
Annual interest rate
Traditional Loan Closing Costs
Discount points (% of loan) (%) 
Origination fees (% of loan) (%) 
Lender fees (processing and underwriting) ($) 
Credit report ($) 
Appraisal ($) 
Title insurance ($) 
Reconveyance fee ($) 
Recording fee ($) 
Wire and courier fee ($) 
Endorsement fee ($) 
Title closing fee ($) 
Document preparation ($) 
Other fees ($) 
How do you plan to pay closing costs? 
Comparison Assumptions
Comparison options/cost of moneyhelp
Marginal tax bracket (%)help
Years to compare total costs: 
This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. This service shall not infer that the company assumes any fiduciary duties. In addition, such service should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.

These calculators are for information, education, and entertainment purposes only. It is your responsibility to evaluate the merits and risks associated with relying on any information provided.

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