What Is a No-Closing-Cost Refinance?

A no-closing-cost refinance allows homeowners to refinance without upfront fees by increasing interest rates or adding costs to the loan principal, potentially leading to higher long-term expenses. Closing costs, which typically range from 2% to 6% of the loan amount, include underwriting, appraisal, credit report, and title search fees. This refinancing option offers benefits such as easier refinancing and short-term affordability.