No closing cost refinance loans can be great for people that do not want to make an exceptionally large payment once their monthly payments are finished. Although a lot of lenders and banks make money by charging people increasingly high interest rates each month, they also make quite a large percentage through taxing an additional closing cost on the end of each deal. Most people that take out loans are going to be given the option of deciding whether they want to pay the fee at the end or pay a higher interest rate each month. Usually it is going to be a better deal to take the interest rate and avoid the closing costs because lending agencies usually value money in the short term more than the long term.
If you want to know what the best deal is for your loan in your particular situation, it would be a good idea to make sure that you do a comparison calculation. This basically means that you gather multiple quotes and do some math in order to find out which deal will be better. If you are not good at determining costs, you should run your quotes through with a financial adviser and see what they recommend to you. Most likely, the calculations will show that both rates (e.g. with and without closing costs) are going to be very similarly priced.
This means that it will be completely up to you to decide upon your method of payment. Are you the type of person that will remember to save up money to successfully make your closing cost payment at the end of your contract? Or would you rather get a no closing cost refinancing loan and not have the responsibility of worrying about your payments? There is really no right or wrong choice here, just pick the method that you think will work out best.
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