Why do some banks offer “No Closing Cost” mortgages?
Most often when a lender promotes a “no closing cost” mortgage product that lender is saying they are prepared to incorporate the fees and up-front costs to close into the principle being borrowed. Thus, minimal to no money out-of-pocket would be required at closing but, would in fact be financed as part of the mortgage principle. NOTE: Increasing the amount borrowed may also effect one’s qualifying factors.
