Best No Closing Cost Refi Loans 2025

Current Mortgage Refinance Rates for April 2025

No Closing Cost Refinance: The What and Why

As you’re getting ready to finalize your new home refinance loan, you’ll bump up against what are known as closing costs. These extra fees during closing can amount to anywhere from 2% to 5% of your loan amount, though they vary based on your home location, loan type, and financial situation. It’s possible to reduce these fees by negotiating lender and third-party fees, legal fees, and shopping around for an appraisal within your budget. If you’re really short on cash at the moment of closing, or want that cash-flow for other moving or renovation expenses, there’s the option to refinance without closing costs. 

These fees won’t be paid by your lender, the sellers, or anyone else. A no closing cost refinance doesn’t mean escaping your loan obligations entirely—what it does mean is that you can defer those expenses to be paid as part of your loan balance or as an increase in interest rate. Doing this means you don’t pay now, but you may pay more later because the interest will accumulate into a higher total number. This can be wise if you want to own but can’t afford these expenses right now and have an upward career trajectory in the near future, plan to sell or refinance in the coming 5 or so years, or have a good short-term plan for the money you’ll save, such as investing it in home improvement projects to increase the value of your new home. 

The cheapest option is to negotiate closing costs as low as they’ll go, and pay them upfront. If you can’t, or have another strategic plan with that money, a no closing cost mortgage could be right for you. 

How to Find the Right Lender for a No Closing Cost Refinance Loan

Learning the ropes of what you are looking for can help you narrow down the various mortgage lender options. Examine your own requirements to narrow down the pool, and read up about the lenders’ reputations, rates and service. Check the following:

Compare the types of lenders

Before you try to tackle the lending world, get some intel. Figure out all the different types of lenders you can access - be they online lenders, your local bank branch, or a credit union. What are the pros and cons of each style lender and what makes you feel the most comfortable.

Read reviews

Look at reviews for the various lenders and compare the average interest rates and APRs for each lender and see if you can get some interim quotes online which you can then take to your chosen lender for negotiation.

Get to know your budget and credit score

Once you’ve gotten some general numbers from lender reviews, take some time to play around with online mortgage calculators to get an idea of what type of property and terms you can afford and what your personal rates will look like. Know which lenders will offer you what you’re looking for per your credit history.

Consider customer service access

Think about what kind of customer service will make you comfortable and give you the assistance that you need. Will you want a personal agent or 24/7 chat? Are you comfortable entirely online or would you prefer a person to talk to face to face? Top mortgage companies offer a wide range of contact options, hours and locations.

Improve your credit

If you’re having a hard time getting approved by mortgage lenders, try and find ways to improve your credit score by paying off outstanding debt if possible so that you can try again in the near future. This will not only free up money for a down payment, it will also tell lenders that you are a secure borrower and this can help you get better terms for your mortgage.   

How to Apply for a No Closing Cost Refinance Loan

Think of a mortgage like this - it’s your chance to buy and own property that would be unattainable as an up front purchase and to build equity and value in that home. You’ll need to show that you have the financial means necessary to make the payments, but you don’t need to pay the value of a home in cash, allowing you to afford the home of your dreams through financing.

Step 1: Choose a lender

When going through the application process, don’t limit yourself to just one lender. Compare mortgage lenders and speak with number of representatives so that you can see who offers good deals and customer service that suits your needs. In addition, once you have an idea of what to expect from lenders, you’ll have a better idea if potential lenders are giving you a good deal or not. Mortgage quotes should compare, and rates should be in the same range, but you will receive a range of mortgage offers from different lenders and it's great to have the means to negotiate and find something you're happy with. 

The U.S. economy has been steadily expanding for the last 10 years, and with more millennials beginning to buy their first homes, this means a strong market. It's good to know though, that rates have been rising through spring 2019. Since 2009, rates have dropped to historic lows, but there's no way to know what the market will bring. Shop around for your mortgage to get the top rates. 

Step 2: Show your sources of income by supplying these documents:

• Bank statements, including any investment accounts
• Private and business related tax returns
• W2 Tax forms from recent years
• Your monthly pay stubs

Step 3: Prioritize the terms that work for you

Some people are most interested in keeping their monthly payments low, while others are interested in making sure their payments don’t fluctuate and they’ll know what to expect for the years to come. Still others look toward paying off their mortgage quickly and building equity in the home. Think about what you need and which terms might be to your advantage.

Rates

The great news for prospective homeowners is that home loan rates are currently at one of the lowest levels in decades, hovering at below 4% for 30-year and 15-year-fixed rate mortgage loans. With additional options for 10-year mortgages and 20-year loans as well, and rates at their current low, this may be a great time to lock down a fixed rate option.  Ask mortgage lenders for their rates through online quote calculators or customer service agents.

Regulations

There are a number of laws and regulations in place in the US to protect borrowers which reputable mortgage companies will all follow. On the federal level, these include a series of laws such as the Truth in Lending Act – which establishes disclosure requirements for lenders – and the Fair Housing Act, which bans discrimination based upon age, race, gender, religion, or nationality. Federal and state regulations are meant to uphold fairness in the lending process, and also to safeguard the financial information of home loan borrowers.

Before taking out a loan, it is important for you to know the relevant state and federal regulations that apply to it and that your mortgage lender adheres to them. These laws protect and help the borrower know their money and property are secure.

Important Information

Regardless of the length, 10-, 15- or 30-year mortgages, all require repayment. Once you’ve bought your home, that property and it’s equity value are yours to borrow against, sell for profit, renovate, or pass to your children. A home loan gives borrowers ownership opportunities, so take a look at our recommended lenders to find  the mortgage that works for you and your dream home.