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. The higher rate gives the lender the margin to cover the closing costs. This may be a great option for individuals that may not have the budget to cover closing costs, or individuals planning on staying in the home for less than seven (7) years. See what makes sense for you.

Assumptions

Amount of loan ($)

Number of years

Mortgage Rates

	No-Cost Loan	Traditional 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 money

(%)

Marginal tax bracket (%)

Years to compare total costs:

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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. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information 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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