No Closing Cost Refinance

No Closing Cost Refinance

Refinancing your mortgage is a way to potentially lower your interest rate and monthly mortgage payment, switch to a fixed-rate refinance loan or use a portion of the available equity in your home to finance major expenses.

No  Closing Cost Refinancing – Zero Closing Cost Refinance

No closing cost refinance is the best way to refinance a mortgage. It is a great way to save some money, consolidate debt, remove a borrower, or take cash out without paying the typical transactional cost. When a loan is refinanced, a financial institution pays the amount already owed on the mortgage and replaces it with a new one. The usual reasons to refinance are to save money or use the equity to leverage a position. Having a lower interest rate on a mortgage will lower the monthly payments and keep more money in your bank account. The most popular way to refinance is with No Closing Cost Refinance or Zero Cost Refinance. Some common reasons to refinance a home mortgage are:

  • Estate buyout or removal of person from deed
  • Spousal buyout / Divorce
  • Debt Consolidation
  • Paying for college
  • Home Improvement
  • Lower rate
  • Get out of mortgage insurance
  • Shorten term
  • Investment or diversify
  • Vacation Homes – Investment properties
  • Lower payment and extend term

ARM to Fixed Mortgage

For a homeowner that has an adjustable-rate mortgage (ARM) who plans to live in the home for an extended period of time, refinancing may be beneficial. This will change the interest rate to a fixed-rate that will give the homeowner a more stable payment. Refinancing also is a way to shorten the length of the original mortgage. If the household income has increased greatly since the home was purchased and a higher monthly rate can be paid, the terms that were originally set may be able to be cut in half. Doing this will save money in the long run and the home will be paid off much sooner. Refinancing the home is a method of attaining more equity on the home. This equity may be needed for major expenditures in the future. This process can also be utilized to consolidate all of the household debts into one monthly bill. Another situation that may require refinancing is when someone moves from the home and is no longer planning to be on the deed of the house. In this circumstance, it’s best to refinance the loan and remove the person from the mortgage. This can be the case when a marriage falls apart and only one person keeps the house, or it can be the result of the current owners selling the home.

ARM to ARM Refinance – ARM Strategy

Buying More time!

Once you close on your 5/1 ARM the clock starts to tick downward from the five years to your first adjustment. Many clients will look at year one, two and three, and four year marks to see if they can secure another five year chunk of time by doing another 5/1 YR ARM at no cost.  We educate clients that once they use up two years of a 5/1 ARM they essentially have a 3/1 YR ARM left.  You should constantly look for the opportunity to extend out your time of security.


Also if you are already in your adjustment period, and have rode the market down: you are at risk also.  You should look at securing another ARM 3/1,5/1,7/1 or 10/1 to avoid the potential 2% increase that may occur when rates rise.  The other benefit is that by refinancing at the lower level, your life time cap will reset lower based on the new loans caps. Trade in your old used ARM for a new and improved ARM.

With an adjustable rate mortgage, the rate you pay is based on a fluctuating index plus a margin. If the rates go up, so will your payments. On the other side, if rates decrease, so will your payments.

ARM loans will generally have an adjustment cap, which puts a limit on how much your interest can go up. Unfortunately, many rate caps can allow for significant increases in your payments, resulting in mortgage payments that you didn’t expect. Once your initial fixed-rate is over, your monthly payments and interest rate for the ARM loan can adjust once per year.

If you have an adjustable rate mortgage, we may be able to help you get a lower cap with no additional costs!

How First Meridian Helps Your Mortgage Refinance

As a consumer you naturally want the best possible interest rate and mortgage program.  The best refinance program is one with no points and no closing costs. The purpose of this website is to inform you of mortgage programs that allow you to keep your interest rate low or stabilize it with absolutely no points and no closing costs rolled into the loan. (Escrows, i.e. taxes and insurance, are excluded) First Meridian pays for the appraisal, title insurance, recording… everything.  You don’t lose any equity! First Meridian has taken the No Closing Cost Program to a new level. Kenneth Harney, a nationally syndicated columnist who writes for The Washington Post described the program and said, “And with…innovative zero cost adjustable rate mortgages in the 5 1/4 percent to 6 1/4 percent range, refinancing just might make sense for you and thousands of other consumers.” We can help you….

  • If your adjustable rate mortgage payment has increased or will increase shortly.
  • If your current interest rate is higher than current market rates.
  • If you currently paying mortgage insurance.
  • If you are in the last year of the initial period. (i.e. you are in the 2nd year of a 3/1 ARM)
  • If you have a balloon mortgage payment that is coming due.
  • If you have a buy down mortgage payment that has increased.
  • If you will not be in the property as long as you originally thought.
  • The benefits of this program are obvious. The borrower saves thousands of dollars in closing costs. The difference between a loan with closing costs and no closing costs is typically only .25%. The cost to refinance, for example a $200,000 loan, however can be as much as $2,200.

First Meridian offers the no closing cost refinance on primary residences only. The no point and no closing cost refinance programs offered are the 1/1ARM, 3/1ARM, 5/1ARM, 7/1 ARM, 10/1ARM, 15 and 30-year fixed. The process is extremely simple and convenient. Applications can be taken over the phone or at your home or office or our online application. Also, settlements can be conducted at your convenience. You can reach an experienced loan officer at the office or by e-mail. If you need a home mortgage refinance in Washington DC, Maryland or Virginia, call First Meridian today at 703-799-5626 to speak to a loan officer.

Serving Areas:



Washington D.C

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First Meridian Mortgage has been providing mortgage loans since 1996.

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