Home Mortgage

Compare a 'No-Cost' Versus a 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 mortage.
Mortgage Rates and Assumptions
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
Title insurance
Reconveyance fee
Recording fee
Wire and courier fee
Endorsement fee
Title closing fee
Document preparation
Other fees
Document preparation
How do you plan to pay closing costs?
Comparison Assumptions
Comparison options/cost of money: (%) help
Marginal tax bracket: (%) help
Years to compare total costs
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This information may help you analyze your financial planning needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. This service shall not infer that 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.