Compare a 'no-cost' vs. traditional mortgage

Many lenders will offer a 'no-cost' loan in lieu of a traditional mortgage. 'No-cost' loans are generally priced at a higher interest rate than a traditional mortgage. The higher rate allows the lender to make enough money on the interest rate spread from the underwriter to pay for all your closing costs and provide them with their profit. Use this calculator to help determine if a no-cost loan with your lender is better than a traditional mortage.
Assumptions
Amount of loan ($) 
Number of years 
Mortgage Rates
No-Cost LoanTraditional Mortgage
Annual interest rate
Traditional Loan Closing Costs
Discount points (% of loan) (%) 
Origination fees (% of loan) (%) 
Lender fees (processing and underwriting) ($) 
Credit report ($) 
Appraisal ($) 
Title insurance ($) 
Reconveyance fee ($) 
Recording fee ($) 
Wire and courier fee ($) 
Endorsement fee ($) 
Title closing fee ($) 
Document preparation ($) 
Other fees ($) 
How do you plan to pay closing costs? 
Comparison Assumptions
Comparison options/cost of moneyhelp
(%) 
Marginal tax bracket (%)help
Years to compare total costs: 
Your Email Address
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