Q: Are There Such Things as No-Cost and No-Fee Loans?

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A: You see promotions for them all the time.  But banking regulators have gone after lenders who misrepresent these loans.  The reality is that no-cost and no-fee loans may actually cost the borrower more over the long term because costs are often hidden by rolling them into the new loan through higher principal or interest. The rates on no-cost loans are usually about 1/2 or 5/8 of a percentage point higher than the "full cost" …