No cost home loan

This type of lending could save homebuyers as much as $5000 in closing costs. Those who are seeking a no cost home loan for a house that they don't plan on living in for the whole term may find the higher interest rate well worth considering. More and more buyers are opting for no cost home loans because they tend to move more often. A fixed rate will mean no variation in the monthly mortgage payment, even if interest rates increase. A 15-year (as opposed to a 30 year) will save almost twice as much in interest penalties over the term. However, a no cost home loan still allows borrowers to keep a cash cushion that could be used to make double payments on the mortgage principal, no matter what the term length is.