Are there really no-cost refinances?
A loan advertised with no closing costs still has costs behind it. They may be offset with lender credits tied to a higher interest rate or added to the amount you borrow. Ask what the offer covers, what you still pay, and how it changes the loan balance and payment.
Compare three ways to handle the costs.
- Pay at closing. Use available cash to pay the agreed costs. Consider the savings you want to retain afterward.
- Use lender credits. A credit may reduce upfront costs in exchange for a higher rate. Compare it with an otherwise similar offer from the same lender without that credit.
- Finance eligible costs. Adding costs to the new loan reduces the cash needed now but increases the balance you owe. Ask which costs can be financed for your loan.
Use the same comparison date and assumptions.
Request an itemized Loan Estimate and identify points, lender charges, third-party charges, credits, and cash to close. Check the new term and balance alongside the payment. Separate prepaid property expenses and escrow deposits from charges for arranging the loan so the comparison stays understandable.
A lower payment is only part of the decision. Ask what you would owe at the date you expect to sell or refinance again, and what happens if you keep the loan longer. The Loan Estimate checklist helps organize these questions.
Try a simple break-even check, then go deeper.
Illustration, not an offer: $4,800 in costs divided by $200 in monthly principal-and-interest savings equals 24 months. That arithmetic does not compare the remaining balances or lifetime interest. A longer term can reduce the payment while increasing interest paid.
Use the refinance break-even calculator for that first check, then ask Ashley for a comparison using your actual loan and plans. Discuss all options available through the bank; this guide does not promise a particular pricing structure.
Sources checked September 14, 2026. Educational content; confirm current program details with your lender.