Refinancing with no closing costs.  How does that work?  Can you start saving today?

First of all, nothing in a mortgage transaction is free.  When a loan is refinanced, there are services rendered and the providers need to be paid.  So, for the most part, when refinancing a first mortgage to a new first mortgage, nothing is truly free.  The costs are paid by someone and ultimately you, by virtue of a slightly higher interest rate. 

Now, if today you could get a lower rate of say, 5.75% with you paying all of the costs, then I can probably do it and pay those costs for you at 6% or 6.125%, provided your loan amount is $200, 000 or better.  The lower the loan amount, the harder it is for me to pay the costs due to the lower revenue. 

So the bottom line is this.  You will always get the lowest rate when YOU pay the cost.  If cost is an issue however, and you can still get a lower rate with me paying the costs, what's to lose?  There are more considerations for sure, but this is the nut and bolts of the decision point: To pay costs or not to pay costs and let Jim pay them.  That is the questiona and if you call me, we can investigate to see what if anything works for you now.  If it is a prudent move to refinance, I will tell you.  If it is not, I will tell you that too!