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  No-Cost Loan Definition
No-Cost Loan A loan that you can obtain at no out-of-pocket cost to you is referred to as a no-cost loan. There are different types of no-cost loans. Some no-cost loans do have costs associated with them, but none of the normal lender costs that you regularly incur with home loans. Other no-cost loans are genuine no-cost loans where you will not incur any expenses. The interest rates on these loans are typically higher than loans where you would pay the costs.

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