So if you take out a $200,000 loan and your closing costs are $4,000, refinancing with no closing costs would mean you’re borrowing $204,000 instead of $200,000., What Is A No-Closing-Cost Refinance? A no-closing-cost refinance allows you to avoid paying closing costs upfront in a lump sum when closing on your refinance loan. Instead, it rolls your closing costs into your monthly mortgage payments (giving you with a higher principal balance). Alternatively, it may be possible to exchange many of the , Traditional mortgage refinance closing costs can range from 1% to 6% of your loan amount, but a no-closing-cost mortgage allows you to refinance with no out-of-pocket expense. That can be a big relief for homeowners who are short on cash, especially if you have a larger loan., , , .