If you want to refinance your mortgage but are short on cash, you can avoid out-of-pocket expenses by choosing a no-closing-cost mortgage refinance.<\/p>\n
But don\u2019t make the mistake of thinking you\u2019re getting out of paying closing costs altogether \u2014 typically you\u2019ll pay a higher interest rate or, in many cases, the closing costs will be bundled into your loan, increasing your balance and monthly payment along with it.<\/p>\n
Here’s what you need to know when considering a no-closing-cost refinance:<\/b><\/p>\n <\/a><\/p>\n A mortgage refinance<\/a> comes with closing costs just as your original loan did. These costs include the lender\u2019s origination fee, any mortgage points<\/a> you buy, the cost of an appraisal, and other expenses as well. Typically, closing costs total 2% to 5% of your home\u2019s price, though it varies based on your location and lender.<\/p>\n According to Freddie Mac, the average cost to refinance a mortgage is around $5,000. The exact amount you\u2019ll owe will depend on your lender, their loan products, where you live, and your loan balance.<\/p>\n Some common fees that go into this amount include:<\/p>\n\n\n
Costs associated with refinancing a mortgage<\/h2>\n