Compare a 'no-cost' vs. traditional mortgage

Many lenders will offer a 'no-cost' loan in lieu of a traditional mortgage. 'No-cost' loans 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 no-cost loan with your lender is better than a traditional mortgage.

Assumptions

Amount of loan ($)

Number of years (1 to 40)

Mortgage Rates

	No-Cost Loan (0% to 40%)	Traditional Mortgage (0% to 40%)
Annual interest rate

Traditional Loan Closing Costs

Discount points (% of loan) (0% to 5%)

Origination fees (% of loan) (0% to 5%)

Lender fees (processing and underwriting) ($)

Credit report ($)

Appraisal ($)

Title insurance ($)

Reconveyance fee ($)

Recording fee ($)

Wire and courier fee ($)

Endorsement fee ($)

Title closing fee ($)

Document preparation ($)

Other fees ($)

How do you plan to pay closing costs?

Comparison Assumptions

Comparison options/cost of money help

(0% to 40%)

Marginal tax bracket (0% to 75%) help

Years to compare total costs: (1 to 40)

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This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. Marquis, Inc., First Horizon Bank, and its affiliated companies do not assume any fiduciary duties and do not provide any investment advice in providing calculations. Calculations provided may differ from calculations made by other commercial or financial institutions or entities. In addition, such service should not be relied upon as the only source of information. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results. Use of service is provided without warranty of any kind, either express, implied or statutory, including FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY, AND ACCURACY. Use of service is entirely at the user's own risk, and user should seek professional financial and legal advice without reliance on service and calculations. Marquis, Inc., First Horizon Bank, and its affiliated companies shall not be liable for any differences in calculations with other financial institutions or entities, lost profits, lost business, losses of any kind, direct or indirect damages, punitive or consequential damages or damages of any kind arising out of the use of this service. User agrees to indemnify and hold Marquis, Inc., First Horizon Bank, and its affiliated companies harmless from any and all liabilities and costs (including attorney fees) for any improper use or violation of these terms.