re: Home Loan Refinance Question

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You are always paying closing costs--no one is going to re-fi the loan for free. Those "no closing cost" loans are simply bundling the cost of the refi into the loan's principal (or into the rate). So instead of paying the couple grand upfront on the refi, you'll be paying interest on it for the life of the loan.

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Ya, lender credits "removed" all out of pocket costs on my recent refi. The rate was lower (duh) than my previous rate and removed PMI, so I don't really give a shite if they baked it in there or not. Its as we know, immaterial as long as you are getting some savings from the maneuver. I paid $400 for the appraisal, filled the escrow account, but essentially got the $400 back when the lender credits were so high it not only covered costs, but paid down my loan approx. $400 by happenstance.

My refi immediately paid for itself, but that was just my situation.