No-cost home financing seems like an idea that's too good to be true. But it's here, and it's waiting for homeowners with a mortgage balance of at least $180,000. No closing cost loans can be used for either a refinance or a purchase transaction, although they are most commonly associated with a refinance.

     Keep in mind the concept of discount points. By paying points, you can buy the rate down.  Well, the reverse is true.  If you decide on a loan with a market rate ( currently about what the big banks charge with fees), we as the lender are paid from the bank enough to cover all of the cost of the mortgage.  We can use these funds to make the transaction free to the borrower. 

     The no closing cost method does not increase your loan balance by one penny and can save you hundreds of dollars per month.

     Should interest rates continue to decline, the borrower can simply refinance again to obtain additional savings.