No Closing Costs, Whats the Catch????
No Closing Costs, What’s the Catch? – No Closing Cost home loans are advertised to borrowers all the time. This may sound like a good deal. However, borrowers may want to investigate a little further because it could cost them thousands of dollars over the life of the loan. How long do you plan on living in your new house? If you expect your stay to be shorter term it is probably to your advantage to accept the higher interest rate in lieu numerous out of pocket closing costs. The no closing cost loan is typically used in situations where the home owner plans on selling the home in a short period of time. The negative impact from the higher interest rate from a no closing cost loan will not have much effect over a short period of time. Investors are also a group of borrowers that use no cost loans since they will own the home for a short time. No closing costs can also be obtained by seller’s concessions and other seller’s assistance. Sometimes one can even play with the purchase price
