No Fee Mortgage: Zero Cash Outlay

2007-03-08 10:33:40

( Legal )



No fee mortgage is simply a type of mortgage plan that does not require any processing or service payments on your part.

No fee mortgages are similar to the no win no fee lawsuit plans designed by lawyers to encourage injured parties to pursue with the lawsuit. Complainants who have no money to pay the lawyer’s retainer fees can still avail of proper legal services.

NO INITIAL CASH-OUT

Under the no win no fee arrangement, your lawyers will receive a percentage of the cash that will be awarded to you should you win the case or should the liable party offer a settlement. No win no fee plans works to your advantage because your lawyer has a stake in your case. In light of this, you are assured that your lawyer will exhaust all legal means to win your case or get decent cash settlement.

No fee mortgage works on the same principle. There will be no initial cash outlay on your part; all you will have to worry about are the regular mortgage payments. Some banks and lending companies also have no fee mortgage programs that have no closing fees.

INTEGRATED MORTGAGE

While the no fee mortgage looks good on paper, you should not be too hasty and jump right into the loan. Lenders will usually compensate for the no fee mortgage plan by charging higher loan interest rates. In some cases, there are no cash outlays and closing fees because they have already been worked into your monthly dues.

As with all financial commitments, study carefully the fine print and make some computations. The main advantage of the no fee mortgage scheme is that all the necessary loan fees have been integrated into a simple payment plan which makes the mortgage payments easier to manage. It can work for some, but not for all.


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