No-Cost Mortgage vs No-Cash Mortgage: Don't Confuse Them

Both a no-cost mortgage and a no-cash mortgage can be good loan products depending on what your current situation is. While they are similar, these loans have some key differences that you should be aware of. Here are a few things to consider about no-cost and no-cash mortgages.

No-Cost Mortgages

This is a type of loan in which your lender is going to pay all of the closing costs for you. You are not going to have to pay anything for appraisal fees, title insurance, points, or any other normal mortgage closing costs. This does not necessarily mean that you will not have to come up with any cash for a down payment though.

No-Cash Mortgage

A no-cash mortgage is a type of loan in which you are not going to have to come up with any cash out of your own pocket. With this type of loan, you are still going to be paying closing costs, but they are going to be rolled into the loan. Your lender is simply going to allow you to borrow the money to pay for your closing costs and any of the other fees associated with the loan. This can be beneficial if you do not have any savings built up.

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