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Refinance Without

Out-of-Pocket

Closing Costs

Get the benefits of refinancing your mortgage without having to worry about closing costs!

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Incorporate Your Closing Costs into Your Monthly Mortgage Payment

Refinancing can be a great way for borrowers to lower their monthly payments, get a better interest rate, or even consolidate their debt. However, closing costs often cause people to avoid refinancing their mortgage even when they could benefit from it. At Newfi, we offer you several ways to refinance now and worry about closing costs later.

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What are

Closing Costs?

Closing costs are fees that lenders charge borrowers for lending them a mortgage loan. These fees are typically 3-6% of your total mortgage after down payment, depending on the loan you qualify for. Closing costs are made up of a number of different fees (appraisal fees, title fees, loan origination fees, etc) incurred during the purchase or refinance process.

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How are Closing Costs Incorporated into My Monthly Mortgage Expense?

Newfi offers two options to avoid upfront closing costs with your refinance. Borrowers can roll their closing costs into their principal balance or take a higher interest rate.

Start Off Right

Interest Rate

Borrowers may waive closing costs by taking a higher interest rate. Ultimately this means that borrowers will have a higher interest balance, and pay more interest over time.

Principle Loan Balance

Incorporating closing costs into your principal loan balance means that your monthly mortgage payment will be higher, but your interest rate will not be affected.

Closing Costs

Borrowers can also pay a portion of their closing costs at the time of closing, and incorporate the rest of the costs into the principal balance or interest rate.

Frequently Asked Questions

What are the Benefits of Refinancing without Closing Costs?

  • No closing costs due upfront at the time of closing your mortgage.
  • If you are considering moving within the next 5 years, your refinance option may save you money in the long run.

What are the Disadvantages of Refinancing without Closing Costs?

  • Borrowers will see higher monthly payments when you incorporate closing costs into principal balance. They will typically be $50 to $100 more per month.
  • Borrowers will ultimately pay more interest over time when opting for the higher interest rate option.

How Does a No Closing Cost Refinance Work?

When you refinance your mortgage, you are taking out a brand new loan that replaces your current mortgage balance. You are also able to pay for any other incurred fees–like closing costs–that you’d like to with your refinance. When you refinance, you pay off your current mortgage loan balance in its entirety and begin paying on your new mortgage loan. 

How Does a No Closing Cost Refinance Compare to a Refinance with Closing Costs?

  • A no closing cost refinance offers borrowers the ability to roll their closing costs into their monthly payments or their interest rate. You still pay the closing costs, just not upfront.
  • Traditional refinances with closing costs require borrowers to pay closing costs up front. These refinances tend to offer borrowers lower monthly payments.

Do I Have to Get an Appraisal for a No Closing Cost Refinance?

You will need to get your home appraised for its current market value to refinance your mortgage with no closing costs in most scenarios. 

What are Current No Closing Cost Refinance Rates?

Your exact rates depend on the interest rate you qualify for and the term you select. Contact us to review your options and calculate your payment.

What is the First Step in Refinancing My Mortgage?

Because everyone has their own unique situation, we recommend speaking to a loan advisor about your options as your first step. Go to newfi.com/get-started or fill out the form on this page for a free consultation with one of our licensed loan advisors to learn about what documentation and qualifications you may need!