No Closing Cost Refinance

When refinancing property that you already own, do you still have to pay closing costs?


You might think, since I already own the property why do I have to pay closing costs like when I purchased a new property?


Each time you get a new loan on your property, you still have to go through the approval process to verify that you are able to repay that loan.  (Exceptions: FHA streamlines and VA IRRRL)

As you go through the process of getting approved, there are dozens of people involved that take your loan from point A (initial application) to point Z (funding)  The lender has loan officers, processors, underwriters, doc drawers, notaries, funders.  The lender has to also pay third-party vendors like the credit report company, flood certification company, the appraisal company, the title company, as well as recording fees with the State and County. You also have to set up your prepaid items. Prepaid items include your property tax, homeowner’s insurance, days of interest and reserves. Even if you are refinancing with the same lender you are currently with, there will be a new set of closing costs.

Now, there are several ways to pay closing costs. The most popular is a no-cost refinance, however keep in mind, even though the commercials would have you believe otherwise, there is never really a “no-cost” refinance. A “no-cost refinance” means is that there is no cost to you, at the closing table, but the costs will be added to your loan balance or paid by receiving a higher interest rate.

When you speak with a loan officer, ask questions about closing costs and depending on your situation, they can show you the advantage of the different options.

If you have questions about rates or closing costs about home loans in Orange County CA and want to learn more, contact Jackie Barikhan directly at 949-600-0944 or visit her business website at