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: 
The information provided here is to assist you in planning for your future. Any analysis is a result of the information you have provided. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice.

Any rate of return entered into the interactive calculator to project future values should be a reasonable average return for the period. Rates of return will vary over time, and generally the higher the rate of return the higher the degree of risk.

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