What is the no cost loan?
The No-Cost Loan allows you to obtain a loan without paying any points, origination fees, or closing costs by incurring a slightly higher interest rate at the time of closing. The rate is typically only 1/4 to 1/2 of a percent higher than with a traditional loan. There is no time needed to recoup the costs associated with that of a tradition loan, allowing you to refinance to a lower rate or sell your home at any time. With a traditional loan, it typically takes 5-7 years to recoup the costs and fees you pay.
