What Are No Closing Costs?
Overview house image by Brett Bouwer from Fotolia.com house image by Brett Bouwer from Fotolia.com No-closing-cost mortgages can save or cost homeowners money. ddf36951-b425-c1d8-09f3-11ff70fb20bb300400 No-closing-cost mortgage loans were extremely popular during the late 1980s and 1990s. From a mortgage lender’s perspective, they were sometimes too popular, as some borrowers refinanced multiple times during a 12-month period. Closing costs are sometimes more than an annoying reality to mortgage borrowers, as they can prevent cash-strapped potential buyers from owning a new home. No-closing-cost loans can be beneficial but come with some negative qualities that must be understood. History As mortgage rates began declining after the worldwide economic slump (mortgage rates of 18 percent) of the early 1980s, lenders engaged in fierce competition to generate new loans. After a few trendsetters began offering “no-clo
