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Is there such a thing as an interest free mortgage?

by nasarius532 from Radium Springs, New Mexico. Jun 26th 2020 Reply

Dan Paladin (dpaladin)
#1 ranked lender in California - 718 contributions

One No free money...

Jun 26th 2020
Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,278 contributions

Actually, it could be possible to buy a home with an interest free loan. Typically, this would be a loan from someone like a parent, that buys it for you and agrees to apply all of your repayments to them toward the principal. Another variation I once saw was the buyer put half down. The 'loan' had a ten-year balloon with no interest. At the ten-year mark, the property was to be appraised and the 'Lender" got 100% of his initial loan amount back and 75% of difference between the original appraisal and the new appraisal. The 'lender' got the right to pick the appraiser. I don't think this would be legal today. If you are talking about a traditional financial institution loan, the Dan is correct ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon and Washington ~ 480-889-9000

Jul 2nd 2020
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