Yes, but you may not have to pay them at closing. A no-cost refinance can roll your closing costs into your new loan.^{Disclosure 2} You could also purchase lender credits, which can offset some or all your closing costs in exchange for a higher interest rate. Ask your loan professional for the specifics of these options.

You apply for a new mortgage with new terms (just at a higher loan amount) to pay off your existing mortgage, then receive cash for the difference after closing expenses. You’ll still have the ease of just one monthly mortgage payment. If interest rates have gone down since you initially purchased your home, you may even lower your interest rate.

We can’t always say for sure because the credit reporting agencies (CRAs) develop and calculate their own proprietary credit scores that they then pass along to lenders. However, generally, a refinance application causes your lender to make a hard inquiry at the CRAs to request information about your credit report and history. These hard inquiries can typically cause a temporary drop in your credit score. Your score can also take a hit when you close your old mortgage as it impacts the mix of accounts that the CRAs consider when they calculate your credit score. As you pay off your new (refinanced) loan, your score can go back up assuming you suffer no other adverse impacts to your credit and you responsibly use your existing accounts (e.g., pay your monthly minimum payments for bills/loans on time). Please reach out to credit agencies if you have any questions or if you need more information.

Most refinances close 45–60 days after you apply.

Yes, your loan officer can lock your rate if you close within a set period of time and there aren't any changes on your application. If you apply online, you can request a rate lock once your loan officer contacts you. Rate locks are available for up to 90 days.

For a cash-out refinance, you'll need to wait until you have at least 20% equity in your home.