When you are getting a mortgage there is no such animal as a NO COST loan. You will pay for it in one way or another. They will raise your rate to cover the fees and closing costs and you will pay much more in the long run. If you are planning to move in a short period of time than it may not be a bad idea. If you are planning on living in the house for period of time (appx 3 years +++) than think about a rate without points and pay the closing costs. The average life of a loan is about 7 years and most people move on after that. Save for your downpayment and work on your credit.We love the program at Emigrant Direct
. It pays 4.65% and moves up as rates go up. You can cut corners and go on a budget and make it happen. Have you been working on those credit scores? If you are working on your credit you need to stay on top of it by checking it at My Fico.Com
Put 5% down and have good credit and shop for the right price on the right home and you will be smiling every time you walk in the front door of your new piggy bank.