Q. I keep seeing ads for mortgage loans with no closing costs. Is this legit?
A. I get asked this question all the time, and yes, it’s legit with some lenders. However, there is no free lunch. Closings costs are a necessary part of the home purchase or refinance process and must be paid by someone. If your lender is advertising that they will pay these for you, then read the fine print. Most will charge a higher interest rate for this option or roll the closing costs into your loan amount, thus increasing the principal balance. If you amortize the closing costs over the life of the loan, the number is astronomical and advantageous to the lender and less beneficial to you. So do your homework before signing. Good luck.