What Is (Not) a No-Cost Loan?

Casey Fleming
"No cost" loans do not exist.
The Unicorn Loan?

You’ve undoubtedly seen or heard ads by mortgage lenders for no-cost or no-point loans, no out-of-pocket cost loans, or loans with super-low interest rates. Would it surprise you to know that these are all the same loan? That’s right! All loans cost money to originate. The difference between them is how you pay for the costs.

Murky waters have hidden dangers
What lurks in murky waters?

Unfortunately the industry makes this concept intentionally murky but it’s not as complicated as some would make it.  Once you understand how it works you have the option to pay for the costs in the way that is best for you.

The math is not that difficult
“No-cost loans” are a myth

The math depends on a lot of factors that vary according to the circumstances, but the concept is always the same. The purpose of this series of blog posts is to give you a peek behind the curtain to help you understand how it works so you can have a more productive conversation with your lender.

In the next three short articles you will learn everything you need to know about this very important topic.  Maybe you’ve heard that you should “always get a no-cost loan” or “never pay points.” In reality it depends entirely on your personal financial situation and your concerns and goals.  You can save yourself tens of thousands of dollars over the life of your loan by making the right choice for you.

Click here to learn how to save thousands by paying for your costs in the best way for you and your family.

Casey Fleming, Author The Loan Guide: How to Get the Best Possible Mortgage (On Amazon)
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Follow me on Twitter for interest rate updates: @TheLoanGuide
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