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Is there such a thing as a no-cost or no-closing cost loan or refinancing?

There are services rendered and costs related to originate all mortgages, but some lenders or mortgage brokers may offer you a loan that is advertised as having no lender fees or no closing costs.

There are two ways lenders can do this. One way is by charging you a higher interest rate and giving you a credit to cover the cost of making the loan. The other way is by adding the closing costs to your loan amount. A higher interest rate will mean you pay more over time and a higher loan amount will increase your payments and reduce your equity.