Compare a 'no-cost' vs. traditional mortgage

Many lenders will offer a 'no-cost' loan in lieu of a traditional mortgage. 'No-cost' loans 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 no-cost loan 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: 
All calculators and tools are supplied as a courtesy only. FHB is not responsible for the accuracy or completeness of information that you provide or information generated by the calculators. Please check your records carefully before inputting your information into the calculators or tools. All projected rates and results are estimates, are examples only, and are necessarily hypothetical in nature. No results are guaranteed. The output of the tools and calculators may vary with each use and over time. The output and results should not be construed as financial, legal or tax advice, and the calculators and tools are not intended to replace the advice of qualified professionals. You should not rely on the calculators and tools as your only source of information. You should consult with a qualified professional of your choice whenever specific advice is necessary or appropriate.

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