What Is a No-Fee Mortgage?
Witthaya Prasongsin/Getty ImagesWhen you apply for a mortgage or refinance an existing mortgage, you want to secure the lowest interest rate possible. Any opportunity a borrower can exploit to shave dollars off the cost is a big win.
This explains the allure of no-fee mortgages. These home loans and their promise of doing away with pesky fees always sound appealingâa lack of lender fees or closing costs is sweet music to a borrower’s ears.
However, they come with their own set of pros and cons.
No-fee mortgages have experienced a renaissance given the current economic climate, according to Ralph DiBugnara, president of Home Qualified. “No-fee programs are popular among those looking to refinance … [and] first-time home buyers [have] also increased as far as interest...