A mortgage isn’t free — there are fees associated with getting the loan. Those closing costs usually total thousands of dollars.
Besides writing a check to pay those fees at the closing table, there’s another way to pay them when you get a mortgage or refinance your existing one: by adding them to the loan amount. The result is called a no-closing-cost mortgage or no-closing-cost refinance.
However, you’ll probably have to accept a higher interest rate over the life of the loan.
“There’s two ways people achieve no-closing-cost mortgages,” says Bob Walters, president and chief operating officer at mortgage lender Quicken Loans. “The mortgage company will flat-out waive them, which doesn’t happen that often. Or, they will present the rate (with) closing costs, and if you don’t want to pay, you’ll take a slightly higher rate.”
Read more of this article here: https://www.bankrate.com/finance/mortgages/is-no-closing-cost-mortgage-for-you.aspx
Article provided by Bankrate.com