There is no such thing as “no-cost refinancing.” There is only “full cost
” refinancing disguised by marketing code as “no-out-of-pocket-cost-
refinancing.”
The first and most frequently used “no-cost” refinancing option is to
simply add all of your closing costs, tax and insurance escrows to your
existing mortgage loan balance, then increase the amount of your mortgage to
cover everything, and have a new mortgage that is a little bigger than when
you first started thinking about refinancing. This may seem counter to
prudent financial management thinking, but this option has been
overwhelmingly successful at achieving consumers’ refinancing goals.