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no cost type

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jones3542 Guest 0.10 Dollars($)	Posted: Sat May 27, 2006 12:06 pm    Post subject: no cost type Is it correct that I do not have to pay up-front costs for a new mortgage with no-cost loans. Are there any other issues attached to it. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
misalie Guest 0.10 Dollars($)	Posted: Sat May 27, 2006 12:46 pm    Post subject: Jones, A no-cost mortgage is not really no-cost. It usually means that the "no-cost" provision at closing time is purchased by a higher interest rate.
jameshogg Joined: 20 Dec 2005 Posts: 1514 Location: nevada 210.98 Dollars($)	Posted: Sat May 27, 2006 1:09 pm    Post subject: Yes Jones, As Misalie said Quote: A no-cost mortgage is not really no-cost. It usually means that the "no-cost" provision at closing time is purchased by a higher interest rate. It means the borrower will be paying those fees bit-by-bit with every monthly payment. The longer the borrower makes those payments, the more extra interest money is collected by the lender.
blue Joined: 21 Oct 2005 Posts: 1138 Location: MARYLAND 137.64 Dollars($)	Posted: Sat May 27, 2006 4:19 pm    Post subject: Hi Jones, In addition to what James said, let me add that there are usually certain payments (costs) at closing, even for a no-cost mortgage. Examples are the per-diem interest from the closing date to the first day of the following month, escrows for taxes and insurance, homeowners' insurance and transfer taxes. And lastly, the no-cost mortgage can be a good deal for you if your plan is to keep the mortgage for a short period of time. It's usually not a good deal if the mortgage is to be held for a long term, say eight years or longer. Blue _________________ Lets help each other. Try my blog

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