You are up to 8 to 10 percent in transaction costs and you don't have any equity. At the onset, nothing-down loans are more expensive than those with down payments. The interest rates and points or both are typically higher and there are additional costs. Try to leave the table early, say to cash in on lower interest rates to save both your credit and your home in a falling economy, and you could face a penalty as stiff as three percent of the loan balance. In lieu of a down payment, one loan required you to hold securities valued at about 40 percent of the home's appraised value.
Some borrowers wish they had zero memory of such loans.
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