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What about these ads for no-cost loans?
In many states, real estate regulatory agencies are cracking down on such advertising. The very term, "no-cost" loan, is misleading because borrowers are actually paying a higher interest rate in exchange for not having to pay fees or closing costs up front when the loan is secured.
A "no-points" loan is one for which the lender does not charge points (one point is equal to 1 percent of the loan amount). But there are other fees involved in no-point loans, as with most loans.

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   Construction Loan

A "construction loan" is a short term loan that is used to finance the construction of homes or commercial buildings. During the term of the loan, the lender makes advances to the builder (referred to as "draws") as the construction progresses pursuant to an agreed upon schedule. The builder makes interest payments on only the funds that have been disbursed to the builder. Typically, the construction loan is refinanced into a permanent mortgage (sometimes referred to as "takeout financing") after the property is completed.
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