It’s funny sometimes to think that most people view the no closing cost refinance loans as free passage where they are not going to be paying even a single cent. While it might be true that there is no initial upfront costs since the lender will pay them for you, you will find that your lender will charge you an arm and a leg in additional premium interest as they try to recoup all the money they lost at the beginning of the deal. Please don’t be surprised by this, the lender would never offer you free lunch. Do you really think that your mortgage company will loan you lots of bucks for nothing? Did you really believe that a loan officer is going to be pushing stack of papers trying to organize your loan arrangement as an act of charity? The truth of the matter is that after 6 years he would have recouped the closing cost and for the next 14years or so he will milk you for all you have.