Refinancing a mortgage entails replacing your current mortgage with a new one. Homeowners decide to do this for a variety of reasons. Most commonly, it is because the housing market has changed and lower mortgage rates are being offered by lenders. Refinancing is attractive in these situations because it can lower monthly payments, shorten the term of their loan, or in some cases do both. Additionally, homeowners who have built up sufficient equity can use the refinance process as an opportunity to remove equity in the form of cash. The borrowed amount is then added to the new loan balance in a process called cash out refinance. 

Just as with a regular, first mortgage, however, a refinance generally includes a series of closing costs. These can amount to thousands of dollars, between credit fees, appraisal fees, points (which is an optional expense to lower the interest rate over the life of the loan), insurance and taxes, escrow and title fees, and lender fees. These costs can vary from state to state. In Florida, for instance, there are no state taxes assessed on mortgage transactions. Loan processing fees also vary geographically.

To entice potential refinancers, some lenders will have special offers that waive closing costs altogether. When a homeowner combines this option with a better mortgage rate, they could see enormous savings compared to continuing with the original mortgage. If no closing costs is however unavailable, another option might be rolling them into the balance of the refinanced mortgage. This could mean a higher interest rate over the life of the loan, and several years to recoup the new closing costs. However, if their plan is to remain in the house for less than five years, this could be an option. Another reason to avoid closing costs might be to obtain more cash for renovations. Not every lender will offer the option, but below, we've compiled a list of the best mortgage refinance lenders with no closing costs.

Top 4 Companies

Our Partner
10 / 10

LendingTree provides homeowners looking to refinance their mortgage with the ability to access a variety of different lenders from their network. By searching through live rates, consumers can get multiple offers, in order to obtain the most cost-effective loan and compare across a number of different direct lenders. Some of these lenders have offers in which they waive closing costs altogether, whereas others can roll them into the loan amount. Another good reason to consider LendingTree is that the application fee is always free.

Our Partner
9.8 / 10

J.G. Wentworth helps homeowners obtain almost any type of mortgage for their refinance needs, including traditional fixed-rate mortgages, FHA, VA, or USDA loans, and the HARP program. They provide a series of helpful tools on their websites, such as refinance calculator, online chat with their representatives, and thoroughly comprehensive articles and guides. Though they don't guarantee that they can waive closing costs, it is one of the options available. Regardless, they offer some of the most competitive mortgage refinance rates in the industry, and exceptional customer service, paired with an easy-to-follow application process.

Our Partner
9.5 / 10

SoFi ensures that closing costs are always kept at a minimum by never charging application, origination, or lender's fees. In just two minutes, SoFi connects you to their network of lenders and obtains a quote for your mortgage refinance. Typical applications close in less than a record thirty days, and if you're a member, you can also receive exclusive discounts. They're more limited in the type of loans they provide, but with a 15-year, 30-year, and a 7/1 adjustable rate mortgage (ARM) option available, every homeowner is sure to find a loan that fits their needs.

Our Partner
8.5 / 10

loanDepot claims to be the second-largest consumer non-bank lender in the U.S., and most of this is in mortgage loans. They offer conventional mortgages, FHA and VA loans, and HARP refinances across all fifty states. They have an A rating from the Better Business Bureau, with good reviews across the board, emphasizing their efficient, fast service. If there's enough equity in your home, they assure their customers that they can add all the fees and pre-paid items into their new loan. Alternatively, there are also no-cost and low-cost refinance options that can lower your rate and payment with no or minimal investment.

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