From Time Inc.:



The article explains that aside from the down payment, mortgage closing costs are likely going to be the largest expense in the homebuying process. No-closing-cost mortgages, offered by mortgage lenders, allow borrowers to avoid paying closing costs upfront, but end up costing more money in the long run. The article outlines typical mortgage closing costs, how no-closing-cost mortgages work, and their advantages and disadvantages. It also includes frequently asked questions about no-closing-cost mortgages and alternative options. The article concludes by advising that no-closing-cost mortgages may help cash-strapped homebuyers afford a home by lowering the upfront amount required to purchase a home, but they are not the only way to avoid steep closing costs, and may end up costing far more over the life of the loan.



Original: What Is a No-Closing-Cost Mortgage?