No cost home loan

A no cost home loan spares the home buyer extra costs such as appraisal fees, document fees, or even "points", a percentage of the loan that the borrower is often required to pay up front. These special loans are popular because they relieve buyers, especially first time buyers, from having to come up with out-of-pocket cash to get their mortgage set up. There is only one drawback. In order to save money on a no cost home loan, the homebuyer will have to pay a higher interest rate throughout the term. The wisdom of using this type of lending depends on the current cash liquidity, the affordability of the monthly rates, the value of the home, and the length of time the homeowner plans on staying in the house. Closing costs can often be daunting, especially when the borrower would rather spend that money on the new house. No cost home loans provide a fast way of getting into a house without using up savings.