As you may have already concluded, there is no free lunch in the mortgage industry.  No closing costs loans are a feature offered by lenders where the loan will have a higher rate than a comparable loan in which the borrower pays the closing costs.  The benefit is less money is used to close the loan and the trade off is a higher interest rate for the borrower.  The lender will make more money over time with the no closing cost loan because of the higher interest rate.  The mortgage calculator is designed to compare these two products and explore which option best suits your needs.  The mortgage calculator will help the borrower evaluate the interest rate differences, the monthly mortgage payment difference, the closing costs and the total costs over the life of the loan between the traditional mortgage and the no closing costs loan.

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