What is a no closing cost mortgage?

A no closing cost mortgage is a type of mortgage where the lender covers the closing costs associated with the loan, rather than the borrower. Closing costs are the fees and expenses associated with obtaining a mortgage, such as title insurance, appraisal fees, and loan origination fees. No closing cost mortgages are advantageous if you plan to move before the full term of the mortgage loan (e.g. 30 years) and/or if you want additional flexibility to refinance in the future. With a no closing cost mortgage, other lenders may typically charge a higher interest rate to make up for the costs they are absorbing. 

However, CapCenter specializes in no closing cost mortgages and is able to offer competitive rates and terms, which is why our most frequently asked question from potential clients is, "is there a catch?" but 94% of our past clients would recommend CapCenter to friends and family.

CapCenter encourages potential clients to shop around for loan estimates and comprehensive closing costs and to compare interest rates, discount points, lender fees, terms, non-lender fees, and any realty credits. Most lenders will focus on interest rates and APRs, but CapCenter excels in lender fees, non-lender fees, and loan terms while remaining competitive on interest rates. For this reason, we encourage potential clients to compare more than the APR, which can be lowered by increasing upfront costs and doesn't include the calculation of many non-lender fees that CapCenter waives.

There may be some closing fees for non-standard loan options (e.g. condos, second homes, investment homes, jumbo loans), so check out our mortgage calculator for more information for your property's location, use, type, and other data.

Read our disclosures to see how CapCenter's Zero Closing Cost offer works for you in your state.