No-Closing Cost refinancing

Borrowers with this type of refinancing typically pay few upfront fees to get the new mortgage loan.[citation needed] In fact as long as the prevailing market rate is lower than your existing rate by 1.5 percentage point or more, it is financially beneficial to refinance because there is little or no cost in doing so.
However, what most lenders fail to disclose is that the money you save upfront is being collected on the back through what's called yield spread premium (YSP). Yield spread premiums are the cash that a mortgage company receives for steering a borrower into a home loan with a higher interest rate. The latter will even eventually lead to borrower's overpaying.

See also :
Cash out Refinancing

Refinancing loan   Personal loan   Mortgage loan