Trying to get clarification on what a no cost mortgage is and the difference between a no cost mortgage and a traditional mortgage. How do I know which is going to be better for me?
No-cost mortgages don’t eliminate closing costs, they are simply wrapped into the loan balance and are then paid over time. I see a lot of people who get sales calls from mortgage brokers talking about these "no closing cost" mortgages but the devil is in the details.
On the matter of which is best for you, it depends... Do you have a lot of cash available now? Would you prefer to keep cash and pay a slightly higher monthly payment?