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When rates drop, many homeowners hear about a “no closing cost refinance.” It sounds like free money—but is it really? Let’s break it down. What Is a No Closing Cost Refinance? A no closing cost refinance allows you to refinance your mortgage using lender credits to pay for third-party closing costs. How is this done? Well, in markets where interest rates are heading down, homeowners who may have purchased or refinanced at a higher rate can refinance at a lower rate that has lender credits to cover the closing costs. We are also able to wrap the interest and other fees into the loan, so the borrower pays nothing out of pocket. Instead of paying thousands at closing, those costs are covered in one of two ways (and usually BOTH): Lender Credit – The lender gives you a higher interest rate and uses that extra margin to cover the costs. Rolled Into the Loan – The lender adds the closing costs into your new loan balance. 🏡 Mortgage Rates Are a Menu — Not One Number Most people think there’s just one mortgage rate — but really, rates are shown on a matrix (a pricing sheet lenders use). Each interest rate has a cost or credit attached to it. Higher Rate → Lender Credit (the lender gives you money to offset closing costs — this is how “no closing cost” refinances work). Lower Rate → You Pay Points (you pay extra upfront — called “discount points” — to buy the rate down and get a lower payment). 💵 Hypothetical Example — $400,000 Loan (Numbers below are for illustration only — not a rate quote or loan offer) Rate Option Upfront Cost / Credit What It Means 5.50% $0 (Par Pricing) The “standard” rate — no extra cost or lender credit. 5.75% 1% lender credit (≈$4,000 back). You get about $4,000 to help with closing costs, but pay a bit more each month. 5.25%. 1% cost (≈$4,000) You pay about $4,000 at closing to “buy down” and lower your monthly payment. 💡 Monthly Payment Impact (Approx.) 5.75% → about $133 more per month vs 5.25% 5.25% → about $133 less per month vs 5.75% 🧮 How People Use This Short-term or planning to refinance again → Pick the 5.75% “no-cost” option — you’re not out of cash and can refi if rates drop. Long-term home → Consider paying the 1% to drop the rate and save monthly. The Pros ✅ No big check to write at closing ✅ “Instant” monthly savings ✅ Great for homeowners who want quick savings, knowing if the market drops again, they can do another refinance The Cons ⚠️ Not the lowest market interest rate ⚠️ Loan balance can increase if costs are rolled in ⚠️ May not be the best long-term solution Who Should Consider It? Homeowners with interest rates about 1% or more above the current market. Borrowers who want lower monthly payments without spending money out of pocket. Anyone refinancing to drop mortgage insurance or adjust loan terms quickly. The Bottom Line “No closing cost” doesn’t mean free—it just means structured differently. The best refinance strategy depends on your financial goals, how long you’ll stay in your home, and the rate environment. 👉 Want to know if a no closing cost refinance makes sense for you? Let’s run the numbers together. Garrick Werdmuller Independent Mortgage Broker DRE BRKR 01368202 | NMLS 242952 📞 510.282.5456 | 📠 510.225.0382 ✉️ garrick@freshhomeloan.com 🌐 freshhomeloan.com 🏢 1151 Harbor Bay Parkway, Suite 136, Alameda, CA 94502 Socials: https://www.facebook.com/freshhomeloan/ https://www.instagram.com/garrickwerdmuller/ https://www.linkedin.com/in/garrick-werdmuller-b044253/ https://www.youtube.com/@freshhomeloan-garrickwerdm316 #Refinance #Mortgage #RealEstate #MortgageBroker #HomeLoans #Realtor #MortgageLender #LoanOfficer #FirstTimeHomeBuyer #HomeLoan #Finance #MortgageRates #Investment #HomeBuyers #RealEstateAgent #Loans #NewHome #Loan #Home #DreamHome #Property #Mortgages #MortgageTips #HomeOwnership #Lender #Realtors #Lending #Purchase #HomeBuying #Broker

This is something really simple we are VERY well known for. The follow up refer back program. How it works is simple. We find most real estate agents collect a lot of leads, however the follow up can slip behind. With all the inspections, showings, listings appointments, etc. a real estate agent’s business is largely out of the office, it is no wonder some leads may slip through the cracks! Whereas we loan folks, we are tied to our computers and in the office much more. It only makes sense we do the follow up. Not only that, but we also find that a potential lead might tie you to one property or neighborhood and we can work all over. This makes it easy for us to cross sell your services and talk about things like interest rates and home payments. Instead of just making a cold call, I position it through the agent: “Hi [Name], this is Garrick with Fresh Home Loan. [Agent’s Name] asked me to check in and see if you needed help with anything or had questions about the market? Why It Works People remember the agent’s name. I’m just the bridge. It reopens the conversation without pressure. It gives us a chance to share new value—like zero down programs, FHA ARMs, Jumbo Loans, Fix n Flip, Equity Lines etc. etc. etc. or strategies to get more buying power in today’s market. For Agents, It’s a Win-Win Every time my team and I make these calls, I’m putting the agent’s brand in front of their old leads again and letting prospects know the agent has a solid follow up team. They don’t have to do the chasing, but they still get the credit when the lead is ready to move. It’s leverage. It’s consistency. And it’s one of the simplest ways to turn cold leads back into live conversations. Fresh Gold for Agents I call this process “Follow Up / Refer Back” —but really, it’s just about doing the work agents don’t always have time to do. Old leads can become fresh gold if you know how to approach them. If you’re a real estate agent and you’d like me and my team to help you re-engage your database, reach out. This is one of the easiest ways to keep your name in the game and uncover deals you thought were dead. 👉 Contact me here and let’s get to work on warming up your cold leads. https://www.freshhomeloan.com/contact-us Or here: Garrick Werdmuller Independent Mortgage Broker DRE BRKR 01368202 | NMLS 242952 📞 510.282.5456 | 📠 510.225.0382 ✉️ garrick@freshhomeloan.com 🌐 freshhomeloan.com 🏢 1151 Harbor Bay Parkway, Suite 136, Alameda, CA 94502 Lets Connect: https://www.facebook.com/freshhomeloan/ https://www.linkedin.com/in/garrick-werdmuller-b044253/ https://www.youtube.com/@freshhomeloan-garrickwerdm316 All loan approvals are conditional and not guaranteed and subject to lender review of all information. Loan is conditionally approved when lender has issued approval in writing, but until all conditions are met, loan cannot be funded. Specified rates and [products may not be available to all borrowers. Rates subject to change according to market conditions and agreed upon lock times set by borrower. Fresh Home Loan Inc. is an Equal Opportunity Mortgage Broker in California. This licensee is performing acts for which a real estate license is required. Fresh Home Loan, Inc. is licensed by the California Department of Real Estate #02137513 NMLS # 2124104 #FreshHomeLoan #RealtorLife #RealtorPartner #FollowUpMatters #LeadGeneration #RealtorSupport #AgentSuccess #RealtorTools #FirstTimeHomebuyer #RealEstateTips #RealEstateGrowth #RealtorHasYourBack #HomeLoansMadeEasy #LoanOfficerLife #MortgageBroker #ColdLeadsToClients #RealtorMarketing #RealEstatePros #FreshLeads #RealEstateStrategy #FreshGold #ReferBack