No-Fee Mortgage

Filed Under: ,
Dictionary Says

Definition of 'No-Fee Mortgage'


A mortgage in which a mortgagee does not charge the mortgagor any fees for the applications, appraisals, underwriting, processing, private mortgage insurance and other third-party closing costs typically associated with mortgages. The total cost savings associated with the lack of fees is typically 3-5%

Investopedia Says

Investopedia explains 'No-Fee Mortgage'


People seeking no-fee mortgages should be diligent when coming upon an offer for a no-fee mortgage, as many mortgagees tack origination and/or closing fees onto the mortgage's interest rate.

Home buyers definitely gain from the prospect of free private mortgage insurance and other cost savings. The financial institutions that offer no-fee mortgages also reap benefits, because the amount of revenue lost in mortgage fees can be recovered when mortgage holders also sign up for bank accounts, credit cards and other higher margin services.

comments powered by Disqus
Hot Definitions
  1. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  2. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  3. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  4. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  5. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  6. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
Trading Center