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.

Assumptions

Mortgage Rates

No-Cost Loan
(0% to 40%)
Traditional Mortgage
(0% to 40%)
Annual interest rate

Traditional Loan Closing Costs

Comparison Assumptions

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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.

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