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Loans

Compare A 'No-Cost' Versus Traditional Mortgage

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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.

AssumptionsInput
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(1-40)
Mortgage RatesNo-Cost LoanTraditional Mortgage
(0-30)%(0-30)%
Traditional Loan Closing CostsInput
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(0-5)%
(0-999999999)$
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(0-999999999)$
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(0-999999999)$
(0-999999999)$
(0-999999999)$
(0-999999999)$
(0-999999999)$
(0-999999999)$
Comparison AssumptionsInput
(0-30)%
(0-50)%
(1-40)
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AssumptionsInput
Mortgage RatesNo-Cost LoanTraditional Mortgage
Traditional Loan Closing CostsInput
Comparison AssumptionsInput
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{ "fields" : { "udata" : [ "loanAmount" , "termYears" , "" , "" , "nocostRate" , "traditionalRate" , "discount" , "origination" , "lender" , "credit" , "appraisal" , "title" , "reconveyance" , "recording" , "wire" , "endorsement" , "closing" , "docprep" , "other" , "payCosts" , "comparisonRate" , "overrideRate" , "taxBracket" , "comparisonYear" ] } }
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This calculator is provided by Financial Calculators, Inc., and is intended solely for general information and educational purposes. You should not take any action on the basis of the information provided through this calculator. Please see the disclaimer for further information and limitations.

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