Offered by most lenders, the loan that has no cost or no points, but generally the interest rate of these loans are a bit higher.
a loan where the the lender pays all of the closing costs, and does not collect any fees from you
A loan that covers purchases or refinancing costs, in whole or in part, which may be incurred in buying a home, obtaining and/or refinancing a loan, but are not directly charged by the lender. The interest rate on this type of loan is higher to offset the elimination or reduction of costs..
Loans offered without costs normally paid to the lender, and/or covering other purchase and refinance transactions (such as escrow fees, settlement fees, notary fees, etc.).
"Many lenders offer loans that you can obtain at ""no cost."" You should inquire whether this means there are no ""lender"" costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Keep in mind that, like a ""no-point"" loan, the interest rate will be higher than if you obtain a loan that has costs associated with it."
Many lenders offer loans that you can obtain at "no cost." Better read the fine print, because most of the time it really is too good to be true. You should inquire whether this means there are no "lender"costs" associated with the loan, or if it also covers the other costs you would normally have -- title insurance, escrow fees, appraisal, etc. These fees and costs may be associated with buying a home or obtaining a loan, but are not charged directly by the lender. Keep in mind that, like a "no-point" loan, the interest rate will be higher than a loan that has costs associated with it. Almost all lenders offer loans at "no points." You will find the APR on a "no points" loan is approximately 0.25 percent higher than on a loan where you pay one point.
A no-cost loan can either be: 1) a loan that has no "lender costs" associated with it or, 2) a loan that also covers purchases or refinancing costs, which may be incurred in buying a home, obtaining and/or refinancing a loan, but are not directly charged by the lender. The interest rate on this type of loan is higher.
Almost all lenders offer loans at "no points." You will find the interest rate on a "no points" loan is approximately a quarter percent higher than on a loan where you pay one point.