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March 17, 2006, Newsletter Issue #73: No Closing Cost Loans
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Tip of the Week
All real estate transactions include closing costs. When a loan is described as having 'no closing costs,' it simply means that the closing costs are rolled into the loan. This may be an advantage for a first time buyer who is trying to scrape together a down payment. Generally speaking, however, it's wise to pay the closing costs at the closing, if at all possible. If you get a 'no closing cost' loan, you are, in effect, paying for those closing costs over thirty years (or whatever the term of the mortgage might be).
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