Released  January 17, 2017
By Megan Greuling

Some loan offers will be “no cost” and/or “no fees” which means that the rate is not impacted by origination costs, points, and fees (i.e. 2.5% (2.5% APR). However, that does not mean that some fees will not be required to be paid outside of closing. For example, a lender will have a charge for their application, credit report and appraisal fee. Rates of such fees vary by lender and the lender will provide you with a Good Faith Estimate/Loan Estimate in relationship to the same. When LendingTree advertises and/or markets available rates and fees from time to time Lenders offer “no cost” and/or “no fee” loans which refers only to the loan originator’s/lender’s fees (see section L, subsection 800 of the HUD-1form), the amounts shown for the “origination charge” and the “credit or charge for the interest rate chosen” should offset each other, so that the “adjusted origination charge” is zero.

In the case of a “no cost” loan where “no cost” encompasses loan originator and third party fees, all third party fees must be itemized and listed in the borrower’s column on the HUD-1/1A. These itemized charges must be offset with a negative adjusted origination charge (Line 803) and recorded in the columns. Not all lenders offer these loans and not all consumers will be eligible for the same. Be sure to ask your lender with whom you are matched for a detailed description of fees, points, origination costs associated with the loan and how the same impacts your rate and APR.