Dear Lender, Why Does my “No Cost” Mortgage cost $8,774.33?
Any smart consumer knows that the adage “no free lunch” applies to almost everything in life. Acquiring a mortgage is no exception. However, one doesn’t have to go very far to find very exciting ads shouting “NO CLOSING COSTS!!” Who wouldn’t be intrigued by such a message? After all, obtaining a mortgage is expensive. Quotes from lenders for a typical $200,000 mortgage will reflect $2,000 to $3,000 in total closing costs, so “no closing costs” sure sounds appealing. So what’s the catch? There really isn’t a “catch” per se, but a consumer certainly needs to stay informed on how all of...
