Frequently Asked Questions
Straight answers about no-cost refinancing.
How is it free? — Who pays the closing costs?
I work with investors who pay me for your loan after closing. So although I provide a lender credit to pay your closing costs, I get paid back after the closing from the investor, which is how my business can both pay your closing costs and still make money.
Will I bring money to closing?
Yes. While I do pay your closing costs, you are still responsible for paying the interest due during the month that we close the refinance. You will also need to bring money to stock up a new escrow account on your new mortgage. However, you then skip your first month’s payment on the new refi loan, and you get your current escrow account balance reimbursed to you after the closing. So those wash out!
Will my loan balance go up?
No—I don’t roll closing costs into your principal. Your new loan amount will match the remaining balance on your existing mortgage.
Do I skip a payment?
Yes, just like when you buy your home, you always skip your first month's payment on the refi.
Will my 30-year clock reset?
It doesn’t have to. This is up to you. If you want to restart the 30-year clock, we can. But if you would like to stick with your current loan schedule, we can. For example, if you've had your current mortgage for 2 years and you're on a 30-year mortgage term, we can give you a 28-year mortgage on the refi to stay on schedule!
Is the “no-cost” option always best?
Often, yes—especially if you value upfront savings or might refinance again. But if you’ll hold the loan for a long time, paying costs for an even lower rate can win over the long run. I’ll show both so you can compare.
Is doing a no-cost refi ever a bad idea?
No—as long as your mortgage lender payings your closing costs, doesn't increase your loan balance, and keeps you on track with your current mortgage schedule, then it's always a good idea!
What information do you need to quote?
What you enter on the home page: loan balance, current rate, home value estimate, ZIP, occupancy, and an approximate credit score. No documents needed for the initial estimate.
Will you pull my credit?
Not for the checker. The initial quote does not pull credit. If you choose to proceed, we’ll get your authorization for a full application and credit pull.
Do I need an appraisal?
Maybe. Many files receive an appraisal waiver from Fannie Mae, but many do not. If an appraisal is required, I’ll schedule it with a local appraiser, and our lender credit will cover the appraisal fee.
I have PMI—can I still refinance?
Yes, of course! And often times, the appraisal of the home will come in high enough, that we can eliminate your monthly PMI payment!
Can I do a cash-out refi and keep it “no-cost”?
Yes, it's no different than how the lender credit works on a rate/term refinance.
What happens to my escrow account?
Your current lender refunds your escrow balance by mail (or deposit) after the refi. A new escrow account is set up on the new loan.
How long does the process take and when do I lock my rate?
Most loans close in about 3–4 weeks. We typically lock once your file is submitted and we’ve verified key inputs. Lock periods are usually 30–45 days; I’ll advise on timing and watch pricing daily.
What if rates drop again after I refinance?
Then we'll refinance you again! I will continue to monitor rates over the life of your loan and will always look to refinance your loan as many times as I can, as long as it continues to save you money for free.