No Closing Cost Loans?

Is there really a no closing cost loan? The answer is NO. There are always costs associated with your loan. Some of them are payable to your local government. Do you think someone will pay them for you out of their pocket? I dont think so. The reality is that when someone tells you they are offering a no closing cost loan, or a refinance for only $500 (for example), then here is the reality...

1. They are rolling all of the closing costs into your new loan balance resulting in no "out of pocket" costs at closing.

OR......

2. The interest rate you are getting is higher than market. So, the lender will make up all of those fees in the additional interest you will pay over time.

Do not let anyone fool you about closing costs. If you like, you can find a list of closing costs here. They are standard in the industry.