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No Closing Cost Mortgage – Is A No Cost Mortgage For You. – When it doesn’t pay. That could end up costing you a lot more than the upfront fees if you keep the mortgage for a long time. Take the hypothetical example of two choices for a $150,000 loan. One has a rate of 3.75 percent with $3,500 in closing costs; the other has a rate of 4.25 percent, with no closing costs.