3 Ways to decide if no-closing-cost refinancing is for you

by Ann Marie Damashek, GRI, CBR, SRES 12/04/2022

Refinancing a home mortgage is fairly common, and can make the fees and costs a little easier to understand. In fact, those searching for options typically know about the upfront closing costs, loan origination fees and other fees and costs to be paid to the new mortgage lender. But did you know there’s a way to not pay those closing costs upfront?

Thanks to no-closing-cost refinance options, homeowners can roll those costs into their new home mortgage and pay those fees and costs over time instead of all at once.

Here are a few key basics for those interested in no-closing-cost refinancing:

When to refinance with no closing costs

Homeowners refinance their mortgages for a variety of reasons. Among those reasons are adjusted monthly payments and borrowing against their home equity.

While these options are widely available for traditional cost refinancing, those hoping to receive these benefits without paying substantial closing costs in a lump sum should consider refinancing without closing costs.

No-closing-cost refinancing is especially great for those who may need extra cash to cover an emergency expense, since there’s no requirement for upfront payment of the overall closing costs.

Where the fees and costs go

Typically, the fees and costs are wrapped into the new monthly payment. This can be observed in numerous ways such as a higher monthly payment than traditional refinancing, a higher interest rate or a longer loan term.

No-closing-cost refinancing still requires the fees to be paid, but you don’t have to have the money to pay them all at once, making them a feasible option for those with financial limitations or surprise expenses.

Know your whole situation

Understanding your situation is key to making the right choice for your home and mortgage payments. For example, think about whether this is your permanent home or if you plan to sell later, as this can directly affect whether no-closing-cost mortgage refinancing will cost you more over time.

While no-closing-cost refinancing seems like the optimal answer for a variety of reasons, it’s still essential to do a deep dive into your goals and needs. If you have questions about lender fees, origination fees or any other part of the refinancing process, contact your mortgage lender.

If you’re not sure where to start, try your real estate agent. They may know a loan officer or mortgage broker that can help you on your refinancing journey.

About the Author

Ann Marie Damashek, GRI, CBR, SRES

Ann Marie Damashek has always been a natural at helping people prepare their homes for sale. She started out with a successful business selling goods for people on eBay. "Nine times out of ten they were hiring me because they were down-sizing,” Ann Marie says. "So I decided to get my license. I said, ‘Might as well sell their house too.’” The transition was a smooth one and for nine years she’s had a thriving full-time real estate business that allows her to marry her entrepreneurial spirit with her passion for helping others. With an office in Larchmont, New York, she serves all of Lower Westchester County, with her primary market in the Sound Shore region. The majority of her business is "sphere of influence” with former clients referring her to friends and family. A gifted communicator, Ann Marie quickly builds trust and rapport with her clients by being both thoughtful and responsive; she understands that during the purchase or sale of a home, a quick response time is crucial. "I am very accessible,” Ann Marie says. "I always make time for my clients. They can call me, text me, email me up until 10 o’clock at night and I will respond. I’m available on weekends. I get back to people very promptly. I’m very customer service-oriented.” Her clients appreciate her professionalism, passion and enthusiasm and as a result her repeat and referral rate continues to grow each year. While selling real estate is serious business, Ann Marie knows that at times humor and a moment of levity can be a relief to clients. While she has a laidback and easygoing personality, she can be assertive when needed on her clients’ behalf. She loves being of service to them, and the continually changing nature of the work keeps her engaged and fulfilled. "It’s never boring,” Ann Marie enthuses. "Every day is different. That’s probably what I like most about it. But I also enjoy helping people sell or buy and educating them about the process. I love helping them achieve their goals.” This ethic of service has resulted in well-deserved recognition. Ann Marie has received the Westchester Magazine Five Star Real Estate Agent Rating four years running, in 2015 and 2016 she was the #1 agent in her office, and she’s a Zillow 5-Star Premier Agent. To keep in touch with former clients, Ann Marie sends cards to mark special occasions or reaches out via email. To market her listings, Ann Marie uses Multiple Listing Services (MLS), as well as Listingbook.com, a service that allows both agents and their clients access to MLS data. She also uses a Facebook business page and ads to boost new listings or promote upcoming open houses. "That drives a tremendous amount of traffic,” Ann Marie says. She also uses the most popular real estate websites such as Zillow and Trulia. A strong believer in giving back, Ann Marie sits on the Board of Trustees of her church and is involved in a variety of social justice projects. She’s affiliated with Furniture Sharehouse, a furniture bank for Westchester County, which collects and distributes gently used furniture free of charge to those in need. "I love it on so many levels because as a realtor, it’s helps my sellers downsize through charitable donations. I like the environmental aspect of it as well. And it helps people who truly need things.” She’s also involved in Impact 100, a women’s philanthropic giving organization. In her free time, Ann Marie enjoys gardening, traveling, and spending time with family and friends. For the future, Ann Marie wants to continue expanding her business and developing her brand, and she someday hopes to grow a strong team. But her main goal is to stay in the real estate business, helping her clients to achieve their dreams.