What is a no-closing-cost refinance and what's the catch?

In a no-closing-cost refinance, you don't pay the fees upfront — but you don't avoid them either. The lender either rolls the costs into your loan balance or gives you a slightly higher interest rate to cover them. The catch is you pay over time, often more than the original fees if you keep the loan for years. It can make sense if you're short on cash or plan to refinance or sell again soon, since you never recoup upfront costs anyway. If you'll hold the loan long term, paying costs upfront for the lowest rate usually wins. Compare both structures at wealthserene.com/tools/refinance-analyzer to see the true lifetime cost difference before choosing.