Compare a Home Equity Loan with No Bank Fees at Closing vs. a Traditional Mortgage

Many lenders will offer a loan with no bank fees at closing in lieu of a traditional mortgage. Loans with no bank fees at closing are generally priced at a higher interest rate than a traditional mortgage. The higher rate allows the lender to make enough money on the interest rate spread from the underwriter to pay for all your closing costs and provide them with their profit. Use this calculator to help determine if a home equity loan with no bank fees at closing with your lender is better than a traditional mortgage.