Refinance Without Closing Costs

With the housing market on the slow path to recovery, many brokers continue to offer low-cost refinances -- a mortgage payment revamping that covers closing costs -- to sweeten the deal for homeowners.

According to mortgage broker Kirk Tatom of Dallas-based Tatom Lending, a low-cost refinance also referred to as a zero-closing mortgage rate, is essentially a way to finance closing costs. For homeowners who plan to stay in their home, this is advantageous with one overarching caveat: it's beneficial as long as it lowers monthly mortgage payments and there's no change in the loan's balance, maturity date (the final payment date of the loan) or on the terms of the loan.