 Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 819
Location: OHIO
211.27 Dollars($)
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 Posted: Sun Jul 24, 2005 9:00 pm Post subject: RE: |
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Hi Guest
A no-cost mortgage is one in which a lender pays for the borrower's settlement costs at closing. However the latter is required to pay the interest from the closing date to the first day of the following month at the time of closing. There are also charges for taxes and insurances paid to lenders to make up for the loss in case of default payment.
The lender charges a high interest to compensate the absence of closing costs. He also pays the broker's fees and other costs.
No-cash mortgage is a mortgage in which neither the lender nor the borrower pays the settlement costs at closing. These costs are added to the loan amount. The borrower pays these costs along with the interest.
Hope this information will fulfill your needs.
Regards,
Jessica. |
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